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TaskUs An 'Underappreciated Beneficiary Of AI Investment,' Says Analyst, Has Meta Platforms As Key Client

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TaskUs An 'Underappreciated Beneficiary Of AI Investment,' Says Analyst, Has Meta Platforms As Key Client

TaskUs, Inc. (NASDAQ:TASK) shares were climbing on Friday.

The company is an "underappreciated beneficiary of AI investment," with exposure to key customers Meta Platforms and Open AI, according to Morgan Stanley.

Analyst James Faucette upgraded the rating for TaskUs from Equal-Weight to Overweight, while raising the price target from $18 to $21.

The TaskUs Thesis: Given its strong execution, the company is likely to continue increasing wallet share with Meta Platforms, "which should accelerate growth in AI Services," Faucette said in the upgrade note.

Check out other analyst stock ratings.

The market for data labeling and annotation services, which help improve the performance of LLMs (large language models) in Gen AI applications, has "meaningfully expanded," with the expansion of Gen AI adoption by enterprise clients, the analyst stated.

TaskUs has "a first-mover advantage" in the data labeling market, which positions it to "capture incremental market share," he added.

"Industry-leading margins reinforce TASK’s competitive moat and we think investors will reward accelerating top-line growth," Faucette further wrote.

TASK Price Action: Shares of TaskUs had risen by 12.74% to $18.01 at the time of publication on Friday.

Read More:
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Latest Ratings for TASK

DateFirmActionFromTo
Mar 2022Goldman SachsMaintainsBuy
Mar 2022RBC CapitalMaintainsOutperform
Jan 2022Goldman SachsInitiates Coverage OnBuy

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