Could META Hit $300? Analysts See Meta Platforms As A Multi-Year AI Play With Strong Growth In Sight

Bank of America Securities turned increasingly bullish on Meta Platforms, Inc. META, anticipating AI to deliver stronger profitability and revenues in the coming years, after the company posted better-than-expected results last quarter. 

BofA research analysts Justin Post and Nitil Bansal reiterated their Buy recommendation on Meta Platform and boosted the price target from $250 to $300. 
The new price target would now imply a 40% increase in Meta's share price relative to current levels. 

Meta Seen As A Potential Multi-Year AI Play

Large investments in Graphics Processing Units led the two analysts to turn increasingly optimistic about Meta's AI success in the first quarter.

"Meta highlighted growing AI capabilities in multiple areas including content and ad serving," BofA said in a note.

According to the experts, Meta's messaging platforms provide prospects for AI-enabled ad content development and automated customer assistance. A multi-year AI-driven platform retention could help the stock's multiple expansion. 

BofA Raised Meta's Earnings And Revenue Projections 

BofA increased Meta's sales by 7% to $130 billion in 2023, and GAAP EPS to $13.16. 
Revenues are expected to climb by 8% to $146 billion in 2024, with GAAP EPS increasing by 31% to $16.35.
Overall, the investment bank sees Meta as well positioned for above-industry ad revenue growth, supported by Reels and message ramp, lapping IDFA comps and AI in Advantage Plus, while cost improvements could bring additional EPS upside.
The risks are uncertainty about a 2023 recession, regulatory restrictions in Europe, and new first-party data usage limits on Android.

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