The META Platforms Takeaways: Why This Analyst Sees A Near Triple Upside On The Stock

Meta Platforms Inc’s META gains in subscriber growth and optimism that it can still grow users, revenue and cash flow well-positions the company to lead the ongoing evolution into the metaverse, according to Tigress Financial Partners.

The Meta Analyst: Ivan Feinseth, director of research at Tigress Financial, reiterated a Strong Buy for Meta Platforms while Maintaining the $466 price target. “The ongoing secular shift to video will continue to accelerate as a key growth viewership and ad revenue driver,” the analyst said in the note.

The Meta Thesis: META’s massive user base, strong brand equity and incredibly innovative abilities have made it the world’s dominant social media platform, Feinseth said in the note.

“META’s strong balance sheet and cash flow continue to drive new growth initiatives, including its massive investment in the creation of its Metaverse along with funding strategic acquisitions and enhancing shareholder returns through ongoing share repurchases,” he added.

Feinseth continued, “META continues to expand ways to further monetize its massive user base, increasing penetration by offering additional services, including e-commerce and further embedded advertising.”

Target Price Calculation: Feinseth added: “Our 12-month target price of $466 per share is based on a multiple of just over 13 times our forward 12-month EBITDAR expectations of $97.68 billion, which we expect to increase 19.70% over the NTM and just over 28 times our forward 12-month NOPAT expectations of $46.29 billion which we expect to increase 24.59% over the NTM.

“META’s projected 32.56% Return on Capital (ROC) and 29.80% projected Economic Profit growth over the next 12 months well support our multiples.”

META Price Action: Shares of Meta are up 1.21% to $171.83 Thursday afternoon at publication, according to data from Benzinga Pro.

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