Mate Price Target Raised as AI is Expected to Drive Outperformance

Oppenheimer analysts increased their price target to $350 (previously $285) and reaffirmed their Outperform rating on Meta Platforms, Inc. (NASDAQ:META), noting they believe the company is well positioned to generate higher pricing and engagement through its investments in AI.

These investments have been the primary driver behind the company's superior performance compared to the digital advertising market in Q1/2023, and analysts expect this trend to continue until 2024.

Meta offers Advantage+ ads powered by AI, along with other ad tools through AI Sandbox, which can modify text, images, and backgrounds. Notably, in Q1/23, the company’s ad revenue surpassed that of its competitors for the first time since Q2/21.

Furthermore, the analysts view AI as an opportunity for Meta to expand its Total Addressable Market (TAM) into e-commerce marketplaces and small and medium-sized business (SMB) customer support.