- Guggenheim raised the firm’s price target on Meta Platforms to $665 from $600 and keeps a Buy rating on the shares ahead of the company reporting Q3 earnings
- The firm expects investor focus to be on the advertising-driven revenue outlook for Q4, possible 2025 expense and capex guidance, and updated views on return on AI investment
- The firm believes Meta remains the top destination for incremental ad dollars as supported by recent channel checks and industry-wide data trends in Q3
Meta Platforms Inc. (META) had its price target raised to $665 from $600 at Guggenheim ahead of the company’s third quarter earnings release on October 26.
Guggenheim Maintains Buy Rating
Guggenheim analyst Michael Morris maintained a Buy rating on Meta Platforms shares. The analyst believes Meta remains the top destination for incremental advertising dollars, which is supported by recent channel checks and Q3 industry data.
Focus on Q4 Revenue Outlook
Morris expects investor focus to be on Meta’s advertising revenue outlook for the fourth quarter. Guggenheim forecasts Q4 revenue of $470 billion compared to the consensus estimate of $462 billion.
Updates on 2025 Expense Guidance
Another area of focus will be Meta’s potential 2025 expense and capex guidance updates. Morris notes that Meta has precedent of providing guidance updates during its third quarter earnings calls.
Return on AI Investment Views
Additionally, investors will look for updated views from management on Meta’s return on investment in AI, especially related to the company’s investments in the metaverse.
Bottom Line
In summary, Guggenheim believes Meta Platforms remains attractively valued at current levels ahead of its third quarter earnings release and maintains a bullish outlook on the stock. Key items to watch will be Meta’s Q4 revenue guidance, 2025 expense updates, and latest views on Metaverse investments.
