$Meta Platforms (META.US)$ PT Raised to $470 at Mizuho Secur...

$Meta Platforms(META.US)$ PT Raised to $470 at Mizuho Securities; Sees Upside in FY24
We believe setup is constructive with three catalysts ahead. First, FY24 consensus revenue growth of 13% appears conservative against our expected 22% exit-rate, considering drivers including improved monetization in Reels and FB Shops, and increased demand from Chinese ecommerce advertisers. Second, we expect opex guidance to step-down throughout FY24, consistent with historical trends, with leverage on headcount the primary driver. Lastly, we view Messaging as an attractive optionality, and we estimate WhatsApp could incrementally increase Meta’s revenue base by a third over time using AI to automate customer service. Raise our PT to $470 as we roll our valuation target to FY26, based on 11x our new FY26E EBITDA of $107bn.