Meta Platforms Inc (META)

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Facebook stock will rally significantly due to strong future financial results, according to Rosenblatt Securities.

The back story. In 2018, Facebook shares slid 26% as the Cambridge Analytica data-privacy scandal hurt investor sentiment. Last July, Facebook's stock (ticker: FB) price dropped after it projected reduced long-term profitability because of increased security and content-review expenses.

But so far this year, the stock has rebounded up 28%. The company issued a better-than-expected fourth-quarter earnings report on Jan. 30.

Facebook stock was up 1.2% to $169.39 on Tuesday.

What's new. Rosenblatt Securities analyst Mark Zgutowicz believes there is more upside for the stock ahead. He reiterated his Buy rating for Facebook shares on Tuesday.

"We remain aggressive buyers of FB given stable fundamentals and an accelerating earnings growth profile over the next several quarters," he wrote.

The analyst played down the prospect of any regulatory action to force a breakup of the company's social-media properties.

"We do not see a forced spinoff of IG [Instagram] delivering sought anti-competitive and/or consumer privacy restitution and as such, weight this outcome as low probability," Zgutowicz said.

Looking ahead: The analyst reaffirmed his $212 price target for Facebook stock. That implies the stock could rise 25% from the current level.

Write to Tae Kim at [e-mail]

(END) Dow Jones Newswires