11:09 AM EST, 01/27/2025 (MT Newswires) -- Meta Platforms ( META ) could see strong revenue in Q4, driven by solid eCommerce performance, stronger shopping ads, improved artificial intelligence for ad targeting, and better customer relationship management integration, BofA said in a note Monday.

The analysts said they expect a deceleration in the revenue guidance due to a tougher year-over-year comparison, excluding foreign exchange impacts, in Q1. Their revenue forecast for Q1 is $38 to $42 billion, compared with the Street's estimate of $41.8 billion. Investors expect additional FX pressure in Q1, but as the year progresses, the year-over-year comparison eases. Therefore, the Street may look for any comments indicating growth stabilization after Q1, they added.

The tech giant is reporting its Q4 results on Wednesday. The analysts project revenue for the quarter to be in line with the Street at $47 billion but expect higher earnings per share at $7.05 compared to the Street's $6.75. Their daily active users estimate is 3.32 billion, slightly below the Street's 3.33 billion. They added they expect discussions of DeepSeek's performance to be a key call topic, given Meta's focus on open-source and increased capital expenditures in 2025.

BofA has a buy rating and a $710 price objective on Meta.

Price: 659.43, Change: +11.93, Percent Change: +1.84