Meta Platforms Inc (NASDAQ: META) has already nearly doubled since the start of this year but a prominent Wall Street analyst remains convinced that the stock is not out of room to run just yet.
Meta stock is still inexpensive
On Tuesday, Evercore ISI’s head of internet research Mark Mahaney reiterated the tech behemoth as his top pick.
His $350 price target on Meta stock suggests more than a 45% upside from here. In a recent interview with CNBC, the analyst said:
I still like Meta because the valuation, I think, is still super attractive. It’s trading at a discount to the market and is a company that can sustain 20% plus earnings growth. You don’t see that too often.
Last week, Meta Platforms reported a strong first quarter and issued upbeat guidance for the future (find out more).
Meta is aggressively cutting costs
Mahaney likes the Nasdaq-listed firm for its commitment to cutting costs as well. In March, Meta Platforms revealed plans of cutting another 10,000 jobs to prepare for an economic downturn.
Other reasons cited for the bullish view on Meta stock included “click to message” advertising. The analyst said:
I think this is a global opportunity but it’s particularly strong in markets where WhatsApp is strong. They’re finally starting to figure out how to monetise this effectively. So, there’s a lot of upside still.
Reels, he expects, will contribute more and more to growth moving forward. Note that Meta Platforms Inc is well positioned in artificial intelligence as well.
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