12:45 PM EDT, 07/19/2024 (MT Newswires) -- Meta Platforms ( META ) is likely to benefit from continued China advertiser demand amid high investor expectations, Oppenheimer said in a note.

"US import volumes/shipping prices from East Asia to the US showing strong demand for China products, suggesting China advertiser tailwind continues," Oppenheimer analysts, including Jason Helfstein, said.

The analysts said the stock is now derisked after recent underperformance against the Nasdaq. They raised their price target on the stock to $525 from $500 while keeping their outperform rating.

"Since the presidential debate, META has underperformed NASDAQ 850bps on possible repeal of TikTok ban, tariff risk for China advertisers, and long-running feud with Trump & Vance views on regulating Big Tech," the analysts said. "As a result, we are less concerned with high 2H investor expectations, supported by a robust digital ad market."

Geographic analysis and AI improvements should also sustain advertiser demand, the analysts said. They raised their H2 revenue growth to 11% from prior 10%, though Q4 remains unchanged.

Price: 481.26, Change: +5.41, Percent Change: +1.14