Bank of America repeats its Buy rating on technology company Meta with a price target of 810 dollars ahead of the report on October 21.
The bank expects revenue of 63.8 billion dollars in the third quarter, above consensus of 63.3 billion, supported by strong advertising growth driven by AI.
For the fourth quarter, revenue of 74.1 billion dollars is expected, versus consensus of 73.6 billion.
The bank also sees a risk of earnings pressure in 2027 due to high AI investments, but believes that progress in AI could drive a higher valuation. The stock trades at 22 times expected 2027 earnings.
