10:27 AM EDT, 10/21/2025 (MT Newswires) -- With Meta Platforms ( META ) trading 5% lower since Q2 results, underperforming the S&P 500, Deutsche Bank is favoring the stock going into Q3 earnings, backed up favorable set-up and "strong" data and ad checks, the bank said in a Tuesday research note.

Checks on Meta indicated that ad spend has accelerated in Q3, with expectations for a modest deceleration in Q4, both of which are upside to current Wall Street estimates, Deutsche Bank said.

Additionally, data from Tinuiti showed impressions growth of 15% at Facebook and Instagram growth accelerating to 9%, Deutsche Bank said, adding that sentiment has been impacted OpenAi's Sora app.

Deutsche Bank said there are growing concerns given OpenAI and Google's ( GOOG ) rich product development cycle, Meta might raise its capex investments, which, when accounting for the growing depreciation charge could result in fiscal 2026 expenses exceeding $142 billion currently baked into Wall Street estimates.

Deutsche Bank has a buy rating on the stock, with a $930 price target.

Price: 733.09, Change: +0.92, Percent Change: +0.12