Meta Platforms (META) has won a new Street High price target from research firm Tigress Financial. Analyst Ivan Feinseth bumped up META’s price target to $935 from $645, implying an impressive 29.9% upside potential from current levels. The nearly 45% price target boost comes from Meta’s AI (artificial intelligence)-powered focus on enhancing user engagement, improving content, and an effective advertising experience on its Family of Apps (FoA).
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Meta is a social media behemoth that hosts differentiated and interesting apps, including WhatsApp, Instagram, Facebook, and Threads. Plus, Meta has big ambitions for its virtual reality (VR) and metaverse offerings. The company continues to invest in all fields with the same enthusiasm under CEO Mark Zuckerberg’s leadership.
Rationale Behind Meta’s Updated Price Target
Feinseth is highly encouraged by Meta Platforms’ upbeat Q4 results, leading to his bullish view of the stock. Let’s understand the five-star analyst’s rationale behind the updated price target.
- Meta’s Accelerated AI Investments – Meta plans to spend up to $65 billion on AI this year. Feinseth believes that this investment will drive new product innovation and ongoing AI integration across all business lines and FoA.
- Enhanced AI to Fuel Revenue Growth – The analyst believes that the enhanced AI spend will help fuel greater user engagement and revenue growth. Moreover, Meta’s differentiated apps allow advertisers to reach their target audiences more effectively.
- Expanding Line of Smart Wearables – Feinseth is also encouraged by Meta’s goal to expand the line of smart wearables. These include upgrades to smart glasses, smartwatches, and camera-enabled earbuds. Further, Meta plans to leverage its Llama AI model to empower its edge devices, which is a good move.
- Solid Balance Sheet and Cash Flow – Finally, Feinseth is impressed with Meta’s solid balance sheet and cash flow generating ability, which is what investors always seek. Meta consistently rewards shareholders through share buybacks and dividends. The robust financials will also enable Meta to fund its AI-backed growth initiatives and enhance its platform offerings.
All in all, Feinseth is happy to learn that Meta and Zuckerberg are determined to make the AI growth story a lucrative investment opportunity. As the CEO recently confirmed, this is the best time to invest big in AI and reap healthy returns in the long run.
Is META a Good Stock to Buy Now?
Similar to Feinseth, Wall Street remains highly bullish about Meta stock. On TipRanks, META stock commands a Strong Buy consensus rating based on 44 Buys, three Holds, and one Sell rating. Also, the average Meta Platforms stock price target of $764.61 implies 6.2% upside potential from current levels. In the past year, META stock has gained 54.1%.
