The Meta Platforms (NASDAQ:META) price target was lifted to $470 from $400 per share by Mizuho analysts in a note on Wednesday. The firm maintained a Buy rating on the stock.
Analysts told investors that their firm's metrics deep dive suggests upside for the company in FY24, with three catalysts ahead for the tech giant.
"First, FY24 consensus revenue growth of 13% appears conservative against our expected 22% exit rate, considering drivers including improved monetization in Reels and FB Shops, and increased demand from Chinese e-commerce advertisers," analysts said.
Secondly, the firm expects Meta's opex guidance to step down throughout FY24, consistent with historical trends, with leverage on headcount as the primary driver.
"Lastly, we view Messaging as an attractive optionality, and we estimate WhatsApp could incrementally increase Meta’s revenue base by a third over time using AI to automate customer service," analysts concluded.