BofA Securities has increased its price target on Meta Platforms Inc. to $885 from $810 and kept a Buy rating on the shares. The new target implies meaningful upside from the stock's prior reference price of $668.73. Consensus among analysts is classified as a "Strong Buy," with published targets spanning $685 to $1,117.
In a note accompanying the change, analyst Justin Post pointed to several constructive takeaways from Meta's recent earnings discussion. Post said artificial intelligence is delivering relatively higher returns for Meta versus its peers, a dynamic he sees reflected in the company's performance over the last year - namely 21.27% revenue growth and an 82.01% gross profit margin on a trailing twelve-month basis.
Post further described Meta as building what he called "an infrastructure powerhouse" that could be funded internally. His projection assumes the company will generate positive free cash flow in 2026 while imposing spending limits. Supporting that assessment, data show Meta produced $44.8 billion in levered free cash flow over the most recent twelve-month period. The firm is operating with what the note characterizes as a moderate debt load and a strong liquidity profile.
The analyst also referenced ongoing development of new models and products that expand the company's long-term growth outlook beyond advertising revenues. At the same time, Post expects losses at Reality Labs to peak this year, a recognition of continued short-term investment drag from that division.
BofA's valuation work, based on an after-hours price of $713, indicates Meta is trading at roughly 21 times the revised 2027 earnings per share estimate. That 2027 estimate incorporates potential investment spending that could exceed $10 per share for Reality Labs and generative AI initiatives. On current reported metrics, Meta trades at a price-to-earnings ratio of 29.65 and a PEG ratio of 4.21, figures that suggest the stock is priced at a premium relative to near-term earnings growth.
Meta's recent fourth-quarter results have prompted several firms to rework their outlooks. RBC Capital maintained an Outperform rating, pointing to a revenue beat in Q4 and a substantial increase in first-quarter guidance that addresses investor questions about planned higher spending in 2026. Goldman Sachs raised its price target to $835 and kept a Buy rating, citing an accelerating advertising business alongside AI investments. KeyBanc Capital Markets lifted its target to $855, noting favorable revenue growth prospects and the value being delivered from AI. Loop Capital reiterated a Buy rating and set a $940 target, emphasizing strong results across key indicators and a first-quarter outlook that exceeded expectations. Stifel raised its price target to $820, describing Q4 as "very healthy" with robust guidance for the first quarter.
Taken together, these analyst moves reflect growing optimism among equity research desks about Meta's financial trajectory and strategic positioning, particularly around advertising recovery and AI-led opportunities. At the same time, the company's valuation multiples and the timing of investment returns remain points of focus for investors and modelers.
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