- Many market analysts are raising their targets for Meta Platforms (META) stock performance for fiscal quarter three of 2024.
- Analysts at Stifel and Goldman Sachs raised their price targets for META stock, citing positive factors like the growth of Meta’s AI-powered ad tools and expected strong topline growth.
- The average analyst price target for META stock has increased to $601.79 ahead of the company’s Q3 earnings report expected on October 30th.
Meta Platforms, the parent company of Facebook, has seen its stock (META) climb over 60% so far in 2024. As the company prepares to release its third quarter earnings report later this month, analysts are optimistic that strong results could provide another boost to the stock price.
Analysts Raise Price Targets
Several analysts have raised their price targets and earnings estimates for Meta ahead of the upcoming Q3 report. Goldman Sachs upped their target to $636 from $555, citing expectations for robust topline growth. Meanwhile, Stifel increased its target to $663 from $590, noting positive feedback on Meta’s AI-powered ad tools called Advantage.
Consensus Estimates Point to Growth
According to FactSet, analysts on average expect Meta to post Q3 earnings per share of $5.20, up 18% year-over-year. Revenue is projected to climb 17.6% to $40.16 billion. The average price target among analysts is now $601.79, up from $587.56 earlier this month.
Tailwinds for Q3 Advertising Revenue
Stifel analyst Mark Kelley says early sluggishness in U.S. election advertising has given way to significant ramp up in spending. He believes this “cushion” will translate to upside versus Q3 guidance, and also benefit Q4. Kelley and others cite Meta’s ad products like Advantage as continuing to gain traction.
Technical Analysis
Meta stock is trading above the $543 buy point from a consolidation pattern, according to MarketSurge analysis. This buy point coincides with the fundamental analysts’ bullishness on META headed into the Q3 report.
Conclusion
Given the positive analyst commentary and technical setup, Meta appears well-positioned to potentially extend its 2022 rally with a strong Q3 earnings report. The company is set to release results after the market closes on October 30th.
