Investing.com -- Facebook-owner Meta Platforms (NASDAQ:META) was likely boosted by a "meaningful acceleration" in digital advertiser spending during the fourth quarter, according to analysts at Jefferies.
In a note to clients ahead of the release of the Instagram parent's latest results later this week, the analysts said that their checks into ad expenditures at Meta were "overwhelmingly positive," thanks in large part to benefits from the California-based social media group's recent push into developing its artificial intelligence offerings.
As a result, they now expect Meta to report fourth-quarter revenue at the higher end of the firm's prior guidance range of $36.5 billion to $40 billion. Despite a tough year-on-year comparison, Meta is also seen forecasting top-line growth in the current-quarter at the high end of Wall Street estimates, the Jefferies analysts said.
"We continue to be encouraged at Meta's ability to sustain double[-]digit rev[enue] growth, given the combination of higher engagement from AI investments, and increasing advertiser [return on investment and] efficiency," the analysts noted.
They also raised their price target for Meta shares to $455 from $425, implying around 21 times their estimate for Meta's fiscal year 2025 earnings per share.
Meta is due to post quarterly figures after the close of trading on Thursday.
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