Meta Platforms (META) merits a premium valuation multiple compared with peers because of near-term tailwinds and longer-term strategic advances, Deutsche Bank said Thursday in a report.

Meta has invested in user engagement growth, strengthened its advertising platform and accelerated AI model training, the report said.

Capital investments are "having strong returns in terms of engagement and ad performance, which is translating to Meta's current durable advertising revenue growth," the report said.

Deutsche Bank boosted its price target on Meta stock to $670 from $650 with a buy rating.

On Wednesday, Meta reported stronger-than-expected Q1 results and projected revenue growth in Q2 from Q1.

Meta shares rose 4.5% in recent Thursday trading.

Price: 573.95, Change: +24.95, Percent Change: +4.54