Citi analyst Ronald Josey predicts that Meta Platforms (META) stock has the potential to experience substantial growth in the next three months. In line with this projection, Josey has rated Meta as a Buy with a price target of $385 per share, indicating a 30% increase over Thursday’s closing price.
To support his optimistic outlook, Josey is closely monitoring the advertising landscape and the growing excitement surrounding artificial intelligence. He believes that Meta is capitalizing on a larger share of the online advertising market, which is further bolstered by a surge in advertising demand and an overall improvement in the market.
Despite a slowdown in advertising affecting various social media platforms in the past year, there are clear signs of a recovery. In the second quarter, Meta reported advertising revenue of $31.5 billion, marking a 12% increase from the previous year.
Josey expects further stock gains when Meta provides additional insights into its AI investments and plans during the upcoming Meta Connect virtual event on September 27 and 28. As investors gravitate towards AI-focused companies, Meta has emerged as a major beneficiary, with its stock surging by 146% this year compared to the Nasdaq Composite index’s 26% jump.
During Meta’s recent earnings call in July, Chief Executive Mark Zuckerberg expressed his intention to share more details about AI advancements later this year. He highlighted the potential for AI to enhance user connections and self-expression within Meta’s apps by providing creative tools, acting as personal assistants, facilitating interactions with businesses and creators, and more.
In premarket trading on Friday, Meta’s shares registered a 1.1% increase to reach $298.84.