As shares of
Meta Platforms
edge toward a record after delivering stellar gains last year, another Wall Street team has weighed in on how that run can continue.
The stock was down 0.7% to $367.98 in Thursday trading. But it remained not far from the record of $382.18 notched on Sept. 7, 2021, according to Dow Jones Market Data.
The shares’ gain of 170% over the past 12 months is a tough act to follow, but Guggenheim analysts led by Michael Morris are upbeat. They maintained a Buy rating on the stock in a Thursday report, highlighting recent numbers on Quest 3, Meta’s mixed-reality headset.
Citing third-party global download data, the analysts said downloads rose 6.4% from a year earlier in December, a couple of months after the Quest 3 was released—at a higher price point than the Quest 2.
January trends so far also point to strong growth, suggesting opportunities for 2024, the analysts said. Though trends in Meta’s Reality Labs unit were mostly disappointing last year, download numbers over the year-end holidays indicated that there is potential for growth this quarter and year, they said.
Guggenheim’s report follows one from Mizuho Securities on Wednesday, when shares rose 3.7%. Analysts led by James Lee reiterated a Buy rating on Meta and raised their price target to $470 from $400.
The team presented three factors that could boost shares over the next three months—including that consensus expectations for sales growth are conservative, a decline in operating expenditures, and the use of artificial intelligence to automate customer service for WhatsApp messaging.
Write to Emily Dattilo at [email protected]
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