Meta, Snap price targets raised at Guggenheim amid ad spending hopes
By Scott Kanowsky
Investing.com -- Facebook-owner Meta Platforms, Inc. (NASDAQ:META) and Snap Inc. (NYSE:SNAP) are seeing more stability in advertising demand compared to the final quarter of last year, analysts at Guggenheim said on Monday as they raised their price targets for both of the social media companies.
The analysts noted a "modest incremental" uptick in spending trends on Meta Platforms, while rival TikTok has started to see a deceleration in expenditures due to concerns over possible regulation. Guggenheim maintained its buy rating for Meta and bumped up its price target to $240 a share from $210 per share.
Meanwhile, the analysts backed their neutral recommendation for Los Angeles-based Snap and increased their share price target to $12 from $9. They added that Snap has "industry-leading community growth" and is well-positioned to "capitalize on long-term augmented reality opportunity."
Guggenheim's decisions come as both Meta and Snap have rolled out widespread layoffs in a bid to rein in costs, following a recent slump in advertising spending.
Shares in Meta were trading slightly lower in early U.S. trading, while Snap moved higher.
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