Takeaways from META platforms: Why this analyst sees near-triple potential in the stock

Meta Platforms Inc. META according Tigress Financial Partners.

The meta-analyst: Ivan Feinseth, director of research at Tigress Financial, reiterated a strong buy for meta platforms while maintaining the price target of $466. “The ongoing secular shift to video will continue to accelerate as a driver of audience growth and ad revenue,” the analyst said in the note.

The metathesis: META’s massive user base, strong brand equity and incredibly innovative capabilities 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 building its Metaverse as well as funding strategic acquisitions and enhancing shareholder returns through ongoing share buybacks,” 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 other in-app advertising.”

Target price calculation: Feinseth added, “Our 12-month price target of $466 per share is based on a multiple of just over 13 times our 12-month EBITDAR expectation of $97.68 billion, which we expect to achieve. increase by 19.70% compared to the NTM and a little more than 28 times. our 12-month NOPAT forecast of $46.29 billion, which is expected to rise 24.59% from the NTM.

“META’s expected return on capital (ROC) of 32.56% and expected economic earnings growth of 29.80% over the next 12 months support our multiples well.”

META Price Action: Shares of Meta are up 1.21% at $171.83 Thursday afternoon on release, according to data from BenzingaPro.

Photo: Iryna Dincer via Shutterstock

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