Wells Fargo, which maintains an “Overweight” rating on the stock. “We consider WhatsApp an underrated asset [con] considerable potential,” they explained.
Wells Fargo anticipates solid growth for Meta Platforms. The bank also said that they consider WhatsApp as an underrated asset with considerable potentialand this would be possible if Mark Zuckerberg’s company invoked more direct monetization beyond Click-to-Message ads.
Prior to the publication of the company’s first quarter results, Wells Fargorated the action with “Overweight” and added that They expect solid guidance for the second quarter.
“We see Target as a beneficiary of a healthy e-commerce environment in the first quarterdriven by increased exposure to the Purchasing/Consumer Non-Durable Goods sector,” the firm wrote.
Wells Fargo believes that “the market is increasingly attentive to the next product cycle catalyst (such as Reels in 2023) to drive outperformance of future advertising growth compared to the industry“.
In addition, the bank maintains that in the second quarter, advertising growth will be more in line with industry trends. Wells Fargo sees “sustainable multiple expansion driven by a clear commitment and product catalysts to support the next stage of META stock’s growth, as the positive revision cycle driven by macroeconomic winds moderates.”
“We consider WhatsApp an underrated asset [con] considerable potential, if Meta were to invoke more direct monetization beyond Click-to-Message ads,” the firm added. They also see a “limited impact on first quarter results due to the recent Meta ad performance degradation that impacted some advertisers.”
Source: Ambito
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