Analysts set Meta stock price target

Meta Platforms (NASDAQ: META) has received a slew of reiterated ‘Buy’ ratings with increased stock price targets. 

The social media and tech giant has performed admirably this year — shares are currently up 69.11% year-to-date (YTD) after recording gains of 16.03% on the monthly chart.

This is, however, by no means a sudden surge — stock prices have risen from $323.57 to $585.63 since the company’s rebranding in late October 2021.

Even though the outlook on Meta had been bullish in the last couple of weeks, as the company’s next earnings call, due October 30, is fast approaching, top equity analysts have revised their price targets — and they seem quite optimistic.

Leading the charge is Rosenblatt Securities, which set the highest price target at $811 on September 26, based on expectations that the company’s strategic investments in AI will deliver significant value to shareholders.

Citing an increase in improved customer sentiment and brand advertising recovery, UBS sees an increase in ad spend in the making — while also highlighting META’s ability to secure underappreciated revenue from political spending as we draw closer to Election Day. The multinational investment bank raised its price target from $635 to $690 on October 7.

Joseph Bonner, an Argus analyst, opined that deep cost cuts, robust cash flow, and a re-acceleration in ad revenue were sufficient reasons to increase his stock price target by 10% — from $600 to $660, while also stating that the company had managed to become competitive in the generative AI space.

Deepak Mathivanan of Cantor Fitzgerald likewise maintained an overweight ‘Buy’ rating, while raising his price target from $660 to $670. Meta’s Q2 2024 earnings saw the company beat revenue estimates — and the Cantor Fitzgerald analyst expects similar outperformance both in Q3 and Q4, as well as increased guidance as we reach the end of the fiscal year.

Wells Fargo (NYSE: WFC) reiterated an overweight ‘Buy’ rating, increasing its price target from $647 to $652 on October 2.

On the whole, of the 46 equity analysts who issue ratings for Meta, 42 rate the stock a ‘Buy’, 3 rate it a ‘Hold’, and only 1 rates it a ‘Sell’. 

The consensus is bullish, with the average price target currently being $611.20, which would represent a modest 4.20% upside.

Before moving on, we should note that in general, lower price targets set by equity analysts regarding Meta tend to be less recent — and that we could very well see revisions as we come closer to the company’s next earnings.

Barclays kept an overweight ‘Buy’ rating in its most recent analysis in August, just after Q2 earnings, raising its price target from $520 to $550 — it appears due for an update, as shares have already surpassed that level, although the judgment was rendered based on ‘tough comps’.

Most notably, BMO Capital Markets maintained a neutral ‘Market Perform’ rating on Meta, while raising the price target to $525 from $475. Although the Canadian investment banking company is bullish on the stock in the long term due to the rise of social commerce and a potential TikTok ban, it expects strong headwinds in the short and medium term owing to capital expenditures and creator payouts.