Meta’s (META) Q1 Results Likely to Meet or Slightly Exceed Average Esitmates, Citi Says

In a note to investors today, Citi predicted that Meta’s (META) first-quarter financial results would meet or slightly exceed analysts’ average estimates.

The bank kept a $655 price target and a Buy rating on the shares.

Why Citi Is Still Bullish on META

Meta’s financial results should be lifted by its launch of new ad units, such as Andromeda and GEM. These innovations have been boosting the company’s conversion rates and the quality of its ads, the bank reported.

Also likely to boost META stock are its impressive engagement levels and its monetization of its Threads offering.

Finally, Citi views a number of the company’s new products, including Meta AI, Llama, and Reels, favorably.

Threats Facing Meta

Citi acknowledged that the outlook of the ad market for the second half of this year is uncertain and noted that it is worried about the space’s strength. Additionally, Meta could be hurt by weakness in China, Citi warned.

The Recent Price Action of META Stock

In the last month, META sank 12%, while the shares have retreated 17% in the last three months.

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This article is originally published at Insider Monkey.