Meta seen reporting double-digit second-half revenue growth, Mizuho analysts say

Investing.com -- Meta Platforms, Inc. (NASDAQ: META) is expected to post second-half revenue growth in the double digits, analysts at Mizuho predicted, thanks in part to a solid pick-up in digital ads.

In a note to clients, the analysts added that they see the Facebook owner gaining advertising market share as rival social media platform TikTok faces scrutiny from The Committee on Foreign Investment in the United States, a government agency tasked with looking into corporate transactions that could have national security implications.

In the third quarter, Meta is forecast to deliver a 1% revenue increase versus the prior three-month period. The Mizuho analysts called this projection "reasonable."

"Beyond this quarter, we see positive leading indicators in operating metrics as ad volume has been accelerating for the past [six] quarters due to improved user engagement," the analysts said.

Meanwhile, the Mizuho analysts raised their price target for Meta shares to $350 from a previous mark of $280. They also maintained their buy rating of the stock.

Meta is due to unveil its second quarter results after the close of U.S. trading on Wednesday.

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