China Merchants Securities analysts initiated coverage on Meta Platforms (NASDAQ:META) with a Buy rating and a $721 price target on the stock. The recommendation reflects Meta’s dominant position in the global social media market, supported by diversified revenue streams, expanding monetization opportunities, and strong financial performance.

According to the analysts, Meta continues to demonstrate robust growth, propelled by innovative platforms like Threads and WhatsApp, which are expected to provide incremental revenue contributions following the success of Reels. Advertising revenue is seeing substantial benefits from AI-driven enhancements, further bolstering growth. Additionally, Meta’s strategic focus on efficiency and reduced losses from Reality Labs has led to improved profit margins, reinforcing its financial stability.

Trading at 18 times fiscal 2025 estimated price-to-earnings, Meta is positioned below the peer average of 19 times, offering an attractive valuation given its market leadership and significant growth potential.