Investment bank Morgan Stanley upgraded Meta stock to overweight and raised its price target to $250 from $190.
Morgan Stanley cited company efficiency, revenue and Reels engagement as key factors.
The new price target represents an upside potential of 25 percent from current levels.
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Brian Nowak, an analyst at Morgan Stanley, raised the stock’s target price from Meta Platforms.
In a note published on Tuesday, he rated the stock an “overweight” and raised its price target from $190 to $250, which represents upside potential of 25 percent from current price levels.
Nowak changed his outlook for the social media conglomerate after seeing the rising efficiency as well as the improving trends in revenue, engagement and success of Instagram Reels – a short video tool that competes with TikTok.
Meta stock rallied earlier this month on reports that the U.S. could ban TikTok amid mounting allegations that the China-based app collects user data and poses a risk to people the national security represents.
Nowak also pointed to the development of artificial intelligence metas, subscriptions, and click-to-message ads as other positive factors for optimistic investors.
In addition, the parent company of Facebook and Instagram is positioned to continue to perform well despite flagging consumer demand due to aggressive cost cutting and a business model not based on consumer spending, he added.
Though Meta stock is up about 120 percent since November, Nowak still sees upside as it trades at a discount of 33 percent on a growth-adjusted basis.
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