It hasn’t been a great year for Meta Platforms (NASDAQ:META), home of Facebook. However, one big surprise development gave the company a nearly 3% boost in Friday’s trading.
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The boost in question came from JPMorgan analyst Doug Anmuth, who upgraded Meta’s status from “neutral” to “overweight” following some positive developments. Anmuth also upgraded Meta’s price target from $115 to $150, noting that shares are up substantially off recent lows.
In a research note, Anmuth pointed out that Meta is showing a lot more “cost discipline” of late. Further, Anmuth noted that there’s likely further good news on “top and bottom-line pressures” Meta has seen lately. These issues are likely to ease going into 2023. First, reduced charges connected to iOS privacy rules will likely take effect. Second, improved revenue generation from Reels should contribute to the bottom line. Finally, a better chance of competing against TikTok should also help. Considering that TikTok is already facing substantial legal pressure in the United States, that’s not so far out of line.
Analysts seem to agree with Anmuth’s assessment. Currently, Meta Platforms has a Moderate Buy consensus rating. Since the company’s average price target is $148.26, that means the company enjoys 24.14% upside potential.
