Wall Street Analysts Underestimating Meta Stock’s Potential, Mizuho Says
Meta stock, the parent company of Facebook, experienced a significant surge of 194% last year. However, according to analysts at Mizuho, Wall Street may still be underestimating its potential. Mizuho has raised its target price for Meta shares from 400 to 470, citing the belief that the social media giant can surpass revenue expectations in the coming year.
Meta Stock Can Exceed Revenue Expectations, Mizuho Raises Target Price
James Lee, an analyst at Mizuho, stated that the consensus revenue growth estimate for Meta in fiscal year 2024, which stands at 13%, appears to be conservative. Lee believes that Meta will benefit from various favorable factors, including product improvements, increased engagement through AI content distribution, and a rising demand from Chinese advertisers.
Mizuho’s target price of 470 for Meta shares implies a 31% upside potential from the company’s closing price on Tuesday. This target is one of the most bullish estimates on Wall Street, according to data from FactSet.
Meta Stock’s 31% Upside Potential According to Mizuho’s Bullish Estimate
In the morning trades on the stock market, Meta stock rose nearly 3%, reaching 367.2. Mizuho’s target price of 470 implies a significant upside potential for Meta shares. This suggests that Mizuho is optimistic about the future growth prospects of the company.
Meta’s Year of Efficiency and Potential Catalysts for Growth
Mizuho estimates that Meta’s fiscal year revenue will grow by approximately 15% in 2024, reaching $153.5 billion. In addition to this, Mizuho expects Meta to lower its guidance on operating expenses throughout the year. This reduction in expenses aligns with Meta’s previous efforts to improve efficiency, including layoffs and cost-cutting measures.
Mizuho also believes that Meta can benefit from the automation of customer service using WhatsApp and artificial intelligence. Meta’s CEO, Mark Zuckerberg, has mentioned that business messaging could be a major pillar for the company moving forward. Mizuho sees great potential in WhatsApp, given its large user base of over 2 billion and room for further monetization improvements within the Meta platform.
Meta Stock Extends Gains, Surpasses Buy Point, and Makes Tech Leaders List
Since the start of the year, Meta stock has gained approximately 4%. Additionally, Meta stock’s gains have extended beyond a previous buy point of 326.20, as reported by IBD MarketSmith. Furthermore, Meta stock is included in both the IBD Leaderboard and the Tech Leaders list, further highlighting its strong performance and potential in the tech sector.
In conclusion, Mizuho analysts believe that Wall Street may be underestimating Meta stock’s potential. They have raised their target price for Meta shares, citing reasons such as potential revenue growth, efficiency improvements, and the use of WhatsApp and artificial intelligence. Meta stock has also extended its gains, surpassing a previous buy point and making it onto prestigious stock lists. Overall, Mizuho’s bullish stance on Meta highlights the possibility of continued success for the social media giant.
Analyst comment
Positive news: Wall Street analysts are underestimating Meta Stock’s potential, according to Mizuho. Mizuho raises its target price for Meta shares from 400 to 470, citing the belief that the company can surpass revenue expectations. Meta stock has gained 194% last year and is expected to benefit from various favorable factors and efficiency improvements. Mizuho’s target price implies a 31% upside potential, and Meta stock has extended its gains, surpassing a previous buy point and making it onto prestigious stock lists. Analysts are optimistic about Meta’s future growth prospects.
