Morgan Stanley: Time to buy Meta $META

"Meta's stock has become our favorite pick and a great buying opportunity now. We set a price target of $775, expecting a rise of up to 50%. The company's P/E ratio has dropped to 15x, which is a 55% discount compared to other companies. The market pessimism caused by AI expenses and the advertising market is what created this strong opportunity. We are optimistic about faster and longer growth for the company thanks to AI agents, and we expect earnings per share to reach $36 by 2027. This figure is calculated with significant conservatism for two reasons: first, we assumed a 1% decline in advertising in 2026 as a precaution; second, we did not account for the massive savings of $3 to $7 billion if Meta were to lay off 20% of its employees. This savings alone could increase earnings per share by more than a dollar in 2027 or protect the company if the advertising market weakens."
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