Truist Raises Target for Meta Platforms as ‘Q3 2024 Expected to Demonstrate Continued Ad Demand’

Truist analysts have raised their price target for Meta Platforms to $650 per share, up from $570, due to expectations of sustained advertising demand in the third quarter of 2024. They believe the company will report results at the upper end of its revenue growth forecast, projected between 13% and 20%, driven by robust demand in social advertising and increased cost-per-thousand impressions (CPMs).

The analysts expressed confidence in Meta’s upcoming earnings, anticipating that the company will fall in line with consensus estimates, supported by ongoing social ad demand and rising CPMs. They also expect the substantial investments Meta has made in artificial intelligence to enhance user and advertiser experiences, leading to better ranking and recommendation outcomes.

For the fourth quarter, Truist foresees challenges due to year-over-year comparisons and estimates revenue to be between $44 billion and $46.5 billion, which would represent a 10% to 16% increase from the previous year, although with a slower growth rate compared to earlier quarters.

The analysts noted, “We’re at +12% vs. consensus of +15%.” For the fiscal year 2024, they maintain a revenue estimate of $160 billion, reflecting a 19% year-over-year increase, with adjusted EBITDA staying at $95.5 billion, equating to a 60% margin.

Furthermore, the firm has introduced quarterly estimates for 2025, anticipating an acceleration in revenue growth throughout the year, potentially reaching around 20% by year-end. They explained, “We expect top-line growth to accelerate throughout 2025 from low double digits in 1Q25 to exiting the year at approximately 20% year-over-year.”

With ongoing market share gains in digital advertising and continuous improvements across Meta’s Family of Apps, Truist’s outlook for the company remains positive.