11:49 AM EDT, 10/22/2024 (MT Newswires) -- Meta Platforms ( META ) is expected to deliver a Q3 beat with "continued ROI improvements driving strong advertiser share gains," BofA Securities said in a note Tuesday.

The social media company's results may also show "more evidence of AI strength," the note said. However, high expectations and the potential for some Q4 guidance conservatism may increase the likelihood of near term volatility risk, BofA said.

BofA expects Meta to report Q3 EPS of $5.35 and revenue of $40.4 billion, above the consensus of analysts polled by Capital IQ which calls for EPS of $5.29 and revenue of $40.29 billion.

The investment firm said that its checks indicate that Meta may see strength from its new artificial intelligence tools and new CRM integration that are driving higher return on investment and incremental ad spend.

BofA also sees Meta benefitting from growing monetization of its messaging and Reels products as well as a "modest" benefit from political ad spend.

The investment firm reiterated its buy rating on Meta with a $630 price target.

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