Analyzing Meta’s Growth Potential: Citi analyst Ronald Josey has initiated a ’90-day Positive Catalyst Watch’ on Meta’s shares, projecting a considerable uptick in the social-media company’s stock value. With a Buy rating and a price target of $385 per share, this forecast suggests a notable 30% gain from the stock’s recent closing price.
Driving Factors for Growth: The positive outlook is based on Meta’s expansion in the online advertising market, gaining a larger share. According to Josey, the company is experiencing heightened advertising demand, spurred by an overall market improvement. Despite a slowdown in advertising affecting various social-media platforms in the past year, Meta’s advertising revenue in the second quarter reached $31.5 billion, marking a significant 12% increase from the previous year.
Anticipating Momentum from AI Initiatives: Furthermore, Josey envisions additional growth as Meta delves into AI investments and reveals its strategic plans during the upcoming Meta Connect virtual event on September 27 and September 28. This anticipation of a surge in stock value stems from the potential of Meta’s AI advancements, adding to the positive sentiment regarding the company’s future trajectory in the market.