Meta Platforms leads way for UBS Internet stocks ahead of earnings
UBS analysts indicated that the firm is positive on Meta Platforms (NASDAQ:META) into its upcoming earnings release, while they also raised the price target for Snap (NYSE:SNAP) to $14 from $10 in a note Wednesday.
In a note on US Internet stocks, the analysts stated that the firm's pecking order for online ad names is META and Pinterest (NYSE:PINS) among Buy-rated names, followed by Neutral-rated Alphabet (NASDAQ:GOOGL) and SNAP.
«On Meta, we see Street ests. likely to move higher and we think incremental color on consumer product (GenAI chatbots and Threads) can drive multiple expansion,» they wrote.
Meanwhile, for SNAP, the firm does «not expect an inflection to show up in 2Q revs / the 3Q outlook, as SMB success on the new platform is not meaningful enough to offset cont'd disruption from larger advertisers or brand weakness.»
«At 5x our '24 revs est, we would rather own PINS at a similar valuation with more est upside,» added the analysts.
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