Canaccord Genuity is raising its price prediction for Meta Platforms (META) to $730, citing further growth potential for the stock. META is trading north of $600 a share at press time, growing 70% year-to-date. The Facebook creator expects its stock to be the head of an emerging market in 2025, which is encouraging investing experts to go big on META.
Analysts at Canaccord Genuity upped their price prediction for Meta stock to $730 from $700. The analysts said key growth drivers for Meta cited were artificial intelligence and business messaging. Meta is a growing leader in the AI industry, putting plenty of investments into Meta AI, its newest tech innovation. AI advertising is a new way to generate revenue and is one that Meta is picking up on fast. AI-powered ad creative enhancements, advanced modeling techniques, and business messaging initiatives are poised to outpace industry growth, with Meta at the head of it all.
Additionally, Meta trades for 27.96x P/E, and its forward EV/Sales multiple marginally exceeds the five-year average. This makes sense, says Canaccord Genuity, as Meta continues to have strong fundamentals and with the potential for further valuation expansion compared to its “Mag-7” peers.
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Furthermore, the Augmented Reality (AR) market is making waves in the tech market. According to market analysts, the AR market has a market size of $42.48 billion as of 2024. However, that emerging business is expected to soar over the next five years, growing at a compound annual growth rate of 42.36%. Meta expects to be at the forefront of this market as well, meaning the company may lead in a $248.38 billion industry by 2029 if all goes to plan. This only means further growth for investors’ shares in META stock.
As a Mag-7 stock, Meta is a premium option for investors, expected to continue its recent growth into 2025. However, with being a premium stock META also has a premium price. Its current $603 valuation is a big investment but fortunately has even steeper price forecasts in 2025. While the price is steep, META expects to climb further next year amid the AR stock surge.