Evercore ISI maintains $550 target on Meta platform

Evercore ISI maintained its positive outlook on Meta Platforms Inc. (NASDAQ: NASDAQ: ) on Wednesday, maintaining an Outperform rating and a $550.00 price target. The company's analysis was based on Meta's most recent financial results, which showed revenue rising 27% annually, slightly above Wall Street expectations. Operating income and earnings per share (EPS) also exceeded expectations, growing 4% and about 9% respectively.

Meta's guidance for the second quarter calls for revenue to rise 18% annually and be at the midpoint of the range of $36.5 to $39 billion, slightly below Wall Street's average estimate of $37.8 billion. Despite the positive results, the company's shares fell 13% in after-hours trading. The decline was attributed to high expectations for Meta, which had surged earlier this year.

The company also adjusted its financial strategy, raising its capital expenditures (Capex) forecast for fiscal 2024 to a range of $35 to $40 billion from the previous range of $30 to $37 billion. The adjustment raises the midpoint by about $4 billion, or 12%. Additionally, Meta narrowed its total expenditures (TotEx) forecast to $9.6 to $99 billion from the previous range of $9.4 to $99 billion.

Evercore ISI's report acknowledged the acceleration in revenue compared with previous years and noted that margins improved from the same period last year. However, the company also noted that second-quarter guidance suggests revenue growth may slow as time passes and comparisons become more stringent.

All in all, while Meta's first-quarter results were strong, the company's stock price took a hit as investors reacted to its second-quarter guidance. Evercore ISI reiterated its Outperform rating and price target, reflecting its continued positive view of the company's performance and potential.

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Investment Professional Insights

Meta Platforms Inc. (NASDAQ: META ) continues to attract the attention of investors and analysts with its strong financial results and strategic moves. Using InvestingPro to dig deeper into the company's metrics revealed some key insights worth considering. Meta's market capitalization is approximately $1.25 trillion, underscoring its heavyweight status in the technology industry. The company's P/E ratio is 32.46, which adjusts to a slightly more attractive 29.8 when considering the trailing 12 months to Q4 2023. .

InvestingPro Tips highlights that Meta holds more cash than debt, indicating a strong balance sheet, and that the company has a low price-to-earnings ratio relative to recent earnings growth, which may appeal to value-oriented investors. Additionally, 11 analysts have upgraded earnings for the period ahead, reflecting a positive view on the company's future performance. Notably, Meta's gross profit margin is as high as 80.72%, demonstrating the company's ability to manage costs and maintain profitability.

For those looking for more in-depth analysis, Meta also provides over 15 additional InvestingPro tips that can be accessed through the InvestingPro platform.Interested readers can use the discount code PRONEWS24 Get an additional 10% off with annual or bi-annual Pro and Pro+ subscriptions, giving you a more complete view of your company's financial health and future prospects.

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