Citi expects 'positive catalysts' in Meta report. Why is its stock a "top pick"?
The company is in a good position to exceed revenue and earnings forecasts
Citi Bank admitted the possibility of "positive catalysts" for the shares of Meta (owner of Facebook and Instagram) due to its upcoming quarterly reports. The bank reiterated that it considers the company's securities a "top pick" and maintained its recommendation to buy them. The target price remains unchanged, but it already assumes a 30% rise in quotations - while they are already up 22% in 2025.
Why Citi believes in Meta
"Regarding reporting for the third quarter of fiscal 2025 (expected Oct. 29 after markets close): our industry research shows that Ma is increasing its share of advertising budgets as it launches new products (e.g., Business AI), and as a result, we are initiating a 90-day tracking for positive catalysts. [Meta shares] remain our top pick," Citi analysts wrote in a note cited by CNBC. The bank maintained a Buy rating for the company's securities and a target price of $915 - nearly 30% higher than it was at the close on Friday, October 10.
Citi noted that Meta's user engagement continues to grow, helped by the development of innovative advertising tools that provide a higher return on investment, GuruFocus reports. According to the investment bank, the company has a good chance of exceeding current revenue and profit forecasts, which confirms positive expectations for its financial results in the near future.
Shares of the owner of Facebook and Instagram were adding about 1.2% in trading on Oct. 13, and are up 22% since the beginning of the year.
What other analysts are saying
MoffettNathanson on October 13 lowered its target price on Meta shares to $890, maintaining a "buy" recommendation. His assessment nevertheless assumes growth of shares by 26%.
Meta stock now has 71 ratings from analysts, according to MarketScreener data. Most experts advise to buy securities - 59 recommendations Buy and Outperform. Eight advise to hold (Hold), another one expects that the securities will show results worse than the market (Underperform).
This article was AI-translated and verified by a human editor
