What happened
The stock market came roaring back to life on Monday, with the Nasdaq index up a whopping 3.4% for the day. Almost all technology stocks gained ground during the session, including Meta Platforms (META -1.87%). The parent company of Facebook, Instagram, and WhatsApp finished the day up 3.8%, but one prominent analyst believes its mini-rally has much further to go.
So what
According to The Fly, Stifel analyst Mark Kelley resumed coverage of Meta Platforms Monday, giving it a buy rating and a price target of $400 per share. That target represents an upside of almost 28% from where the stock closed the session.
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Now what
Analysts' opinions can be important data points for investors to consider. After all, these are people who spend the majority of their workdays researching and analyzing stock opportunities.
That said, analysts' conclusions can be wrong, just like everyone else's. None of us know the future. Therefore, while it's worth considering their opinions, don't let them be the only things that you consider when researching a company.
For Meta Platforms, I can say the stock looks surprisingly like a value stock, trading now at just around 21 times trailing earnings. The only time it has traded at a cheaper earnings valuation was in late 2019. And the stock has roughly doubled since then.
A cheap valuation usually means the market isn't bullish on a company's long-term prospects. But Meta Platforms' future does appear bright, considering its ongoing growth and that it is well-positioned to capitalize on the expected growth of the metaverse. For this reason, even though the stock is up from its recent lows, I agree with Kelley -- it likely has more upside and warrants a closer look from investors.
