Stifel analyst Mark Kelley's preview for third quarter digital advertising results said industry check-ins for Meta were 'positive across the board.' In particular, he is bullish on the AI-powered ad tools for Facebook, Instagram and Messenger called Advantage+. 'We believe the Advantage+ suite is still underpenetrated, and positive feedback suggests there is still room for increased adoption, which may translate into greater budget allocation across Meta,' wrote Kelley, who rates Meta stock a buy.
Kelley raised his estimates for Meta's third quarter revenue to the 'high end' of the company's guidance. Further, he raised Stifel's price target for Meta stock to 663 from 590. At Goldman Sachs, analysts similarly upped Meta stock estimates to 636, from 555 while keeping a buy rating. The report cited the analysts' expectation for strong topline growth for Meta, according to a description by Investing.com.
Kelley noted that commentary about overall third quarter advertising spending was largely positive. 'U.S. election advertising ramped significantly after a sluggish start, which we believe was largely due to lack of visibility on the Democratic Party ticket; this provides some cushion to 3Q and should translate into some upside to 4Q guides,' Kelley wrote.
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