Assessing Meta Platforms: Insights From 48 Financial Analysts

Benzinga · 10/14 20:00

In the latest quarter, 48 analysts provided ratings for Meta Platforms (NASDAQ:META), showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 24 21 3 0 0
Last 30D 2 0 0 0 0
1M Ago 10 9 2 0 0
2M Ago 2 1 0 0 0
3M Ago 10 11 1 0 0

Analysts have recently evaluated Meta Platforms and provided 12-month price targets. The average target is $617.12, accompanied by a high estimate of $811.00 and a low estimate of $475.00. This upward trend is apparent, with the current average reflecting a 9.2% increase from the previous average price target of $565.11.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Meta Platforms. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Eric Sheridan Goldman Sachs Raises Buy $636.00 $555.00
Mark Kelley Stifel Raises Buy $663.00 $590.00
Rohit Kulkarni Roth MKM Raises Buy $620.00 $550.00
Nat Schindler Scotiabank Announces Sector Perform $585.00 -
Youssef Squali Truist Securities Raises Buy $650.00 $570.00
Josh Beck Raymond James Raises Strong Buy $650.00 $600.00
Deepak Mathivanan Cantor Fitzgerald Raises Overweight $670.00 $660.00
Justin Patterson Keybanc Raises Overweight $655.00 $560.00
Brian Pitz BMO Capital Raises Market Perform $525.00 $475.00
Lloyd Walmsley UBS Raises Buy $690.00 $635.00
Michael Morris Guggenheim Raises Buy $665.00 $600.00
Ken Gawrelski Wells Fargo Raises Overweight $652.00 $647.00
Jeffrey Wlodarczak Pivotal Research Announces Buy $780.00 -
Deepak Mathivanan Cantor Fitzgerald Maintains Overweight $660.00 $660.00
Brian White Monness, Crespi, Hardt Raises Buy $620.00 $570.00
Barton Crockett Rosenblatt Raises Buy $811.00 $643.00
Justin Post B of A Securities Raises Buy $630.00 $563.00
Doug Anmuth JP Morgan Raises Overweight $640.00 $610.00
Andrew Boone JMP Securities Raises Market Outperform $635.00 $550.00
Scott Devitt Wedbush Maintains Outperform $600.00 $600.00
Colin Sebastian Baird Raises Outperform $605.00 $530.00
Deepak Mathivanan Cantor Fitzgerald Maintains Overweight $660.00 $660.00
Ronald Josey Citigroup Raises Buy $645.00 $580.00
Gil Luria DA Davidson Announces Buy $600.00 -
Deepak Mathivanan Cantor Fitzgerald Announces Overweight $660.00 -
Ivan Feinseth Tigress Financial Raises Strong Buy $645.00 $575.00
Rob Sanderson Loop Capital Raises Buy $575.00 $550.00
Andrew Boone JMP Securities Raises Market Outperform $550.00 $525.00
Michael Morris Guggenheim Raises Buy $600.00 $500.00
Benjamin Black Deutsche Bank Raises Buy $585.00 $525.00
Justin Patterson Keybanc Raises Overweight $560.00 $540.00
Rohit Kulkarni Roth MKM Raises Buy $550.00 $510.00
Ross Sandler Barclays Raises Overweight $550.00 $520.00
Brian Pitz BMO Capital Raises Market Perform $475.00 $450.00
Brad Erickson RBC Capital Maintains Outperform $570.00 $570.00
Mark Kelley Stifel Raises Buy $590.00 $550.00
Youssef Squali Truist Securities Raises Buy $570.00 $535.00
Shyam Patil Susquehanna Raises Positive $600.00 $550.00
Doug Anmuth JP Morgan Raises Overweight $610.00 $480.00
Mark Mahaney Evercore ISI Group Raises Outperform $600.00 $550.00
Ken Gawrelski Wells Fargo Raises Overweight $647.00 $625.00
Lloyd Walmsley UBS Raises Buy $635.00 $630.00
Colin Sebastian Baird Raises Outperform $530.00 $500.00
Ronald Josey Citigroup Raises Buy $580.00 $550.00
Brent Thill Jefferies Raises Buy $600.00 $565.00
Barton Crockett Rosenblatt Raises Buy $643.00 $562.00
Thomas Champion Piper Sandler Raises Overweight $575.00 $545.00
Brian Nowak Morgan Stanley Raises Overweight $575.00 $550.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Meta Platforms. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Meta Platforms compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Meta Platforms's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Meta Platforms analyst ratings.

Delving into Meta Platforms's Background

Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.

Understanding the Numbers: Meta Platforms's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3 months period, Meta Platforms showcased positive performance, achieving a revenue growth rate of 22.1% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Meta Platforms's net margin excels beyond industry benchmarks, reaching 34.46%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Meta Platforms's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.79% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Meta Platforms's ROA stands out, surpassing industry averages. With an impressive ROA of 5.94%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Meta Platforms's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.24.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.