Meta Platforms Stock Has 14% Upside from a Wall Street Analyst

Earlier this week.Oppenheimer (name) ( Oppenheimer )Analysts upgradedMeta Platformsfirms(NASDAQ resonance stock code: META)Revenue expectations for the first quarter of 2024 and beyond. The company also slightly revised its 2025 revenue growth estimate from 12% to 13%.

Analysts see additional growth coming from Meta's investments in artificial intelligence (AI), which will drive more content recommendations and ad products. Oppenheimer maintains an Outperform (Buy) rating on the stock, with a price target of $585, giving it a 12-month upside of about 14% from its previous price.

Is Meta Platforms stock worth buying?

Like the rest of the Magnificent Seven, Meta Platforms relies more heavily on artificial intelligence throughout its business, with nearly one-third of the recommended text, photos and other posts in the Facebook Feed powered by an AI-enabled recommendation system. Advertisers can also take advantage of Meta's Advantage+ product, which uses AI to automate campaigns.

As Meta continues to invest in artificial intelligence, it should be able to increase user engagement on the company's social media platforms and improve advertising results. All of this will have an impact on Meta's revenue and earnings growth, and could benefit its stock.

Over the past 12 months, Meta's share price has soared by 140%, but its valuation remains reasonable at 26x forward earnings estimates.

The consensus view on Wall Street is that the company will post earnings of $23.15 per share in 2025. If the shares maintain a forward P/E ratio of 26 times one year from now, the price will reach $600. Therefore, the analysts' target price of $585 seems reasonable.

However, if Meta can maintain double-digit earnings growth over the next five years, in line with market expectations, the company's stock price could rise significantly by 2029.

Should you invest $1,000 in Meta Platforms now?

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Randi Zuckerberg, former Facebook Market Development Arbitrator and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors. John Ballard has no position in any of the stocks mentioned above, and The Motley Fool recommends Meta Platforms. The Motley Fool has a disclosure policy.

A Wall Street Analyst Says Meta Platforms Stock Has 14% of Upside was originally published by The Motley Fool.