© Reuters. BofA believes Meta Platforms (META) shares can see renewed enthusiasm on 2024 potential
Meta Platforms (NASDAQ:) has a good fourth quarter setup, according to analysts at BofA, who reiterated a Buy rating and $375 price target on the stock in a note.
The analysts, previewing META’s third quarter release, which is expected on October 24, said they expect the social media giant to report continuing strong revenue trends.
“Our checks suggest Meta is benefitting from improving digital ad market, ramping Reels monetization and improving AI-driven ad measurement,” the analysts wrote.
“We now estimate 3Q revenue at $33.5bn (up 21% y/y), in line with Street, and EBITDA at $18.5bn and EPS at $3.79, above Bloomberg ests. at $17.9bn & $3.60, respectively. We expect in-line to modest beat for DAUs,” they added.
The analysts believe positives from 3Q could include a higher-than-expected 4Q growth outlook, strong traction for Reels monetization, and positive commentary on AI-driven benefits for engagement and ad spend.
“With Street cautious on expense/capex guide, key driver for stock will be 4Q revenue guidance, and we expect a strong 4Q vs sector,” said the analysts.
Furthermore, BofA believes that while there is optimism on an ad revenue beat into results, they think the stock can see renewed enthusiasm on 2024 upside potential.
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