KeyBanc has adopted a bullish stance on Meta's (META) growth prospects. Justin Patterson, Keybanc managing director, has lifted his price target on Meta to $540 from $475, citing sustained advertising momentum. Patterson joins the Morning Brief to discuss his outlook on the tech giant.

Patterson highlights that Meta's ad revenue is "accelerating sequentially" despite intensifying competition, indicating that "demand for Meta's advertisements remains very high." He notes that advertisers are willing to bid at higher rates to reach Meta's user base, emphasizing that "the returns for this AI advertising cycle are still very strong."

Beyond advertising, Patterson points out Meta's broader AI benefits. He observes increased engagement across Meta's platforms due to AI investments, as well as ad-tech refinement boosting returns for advertisers. These factors, he argues, are contributing to Meta's overall gains in the market.

Furthermore, with TikTok facing a potential ban, Patterson suggests that Meta's platforms could attract users needing to reallocate their social media time.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith