2023-10-27 22:30:43
The 40% operating margin was Meta’s best in the past two years. (Photo: 123RF)
What to do with the titles of Meta, Savaria and AtkinsRéalis? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Meta (META, $299.53US): que du positif
There only seems to be positives on the horizon for Meta, believes JP Morgan. Third quarter results were better than expected, the revenue forecast for the next quarter is impressive, and spending and investment forecasts are down for 2024.
Analyst Doug Anmuth says revenues reached US$34.15 billion in the third quarter, the upper limit of the range put forward by management. The 40% operating margin was the company’s best in the past two years, while operating revenues came in at US$13.75 billion, 21% above consensus. market and forecast issued by JP Morgan.
Looking at what’s to come for 2024, the analyst believes Meta has a strong product platform and a range of investment opportunities distributed notably between artificial intelligence, videos, messaging and the metaverse.
He says he has confidence in Meta’s ability to balance these investments with operating discipline. He takes as proof the amount advanced for operating and capital investment expenses which are both lower than forecast for next year, respectively between US$94B and US$99B and between US$30B and US$35G.
Despite these strong results, Meta’s stock fell on the stock market following an initial rise due to management discussions surrounding greater volatility in the fourth quarter as a result of current geopolitical tensions.
JP Morgan, however, continues to believe that Meta will continue its excellent execution and will remain disciplined. Doug Anmuth believes investors might try to take advantage of the stock’s temporary decline.
The firm thus increases its target price for Meta shares from US$400 to US$420.
TO FOLLOW: Savaria (SIS, $13.12): consultation fees that add pressure
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