KeyBanc Capital Markets has raised its target price for Meta Platforms Inc. to $855 from $835 and continues to carry an Overweight rating on the shares. The firm pointed to the company's fourth-quarter results and accompanying metrics as the basis for the move.
Meta is trading at $668.73 and has a market capitalization of $1.69 trillion. The company reports a gross profit margin of 82.01% and achieved 21.27% revenue growth over the last twelve months. These figures figure prominently in KeyBanc's reassessment of Meta's medium-term earnings trajectory.
KeyBanc characterized the fourth-quarter snapshot as a "blue-sky scenario," noting that although operating expenses and capital expenditures increased, the company offset those costs with a favorable revenue growth outlook and multiple indicators of value being delivered from artificial intelligence initiatives. The firm specifically pointed to agentic coding as a driver of material improvements in engineering productivity at the social media giant.
Beyond productivity, KeyBanc cited infrastructure growth as a complementary force. The analyst firm now expects Meta to add in excess of $90 billion of revenue during the 2025-2027 period, and it said concerns around return on investment have eased in light of the company’s recent disclosures and internal metrics.
The newly set $855 price target corresponds to a multiple of 25 times KeyBanc's estimated 2027 price-to-earnings for Meta. By comparison, the company currently trades at a P/E ratio of 29.65 and posts a PEG ratio of 4.21, which the firm notes implies Meta is trading at a premium relative to near-term earnings growth.
Independent valuation models show a range of analyst targets for the stock. Those targets run from $685 at the low end to $1,117 at the high end, and one comprehensive fair-value assessment indicated the shares are fairly valued under that model.
Other brokerages and research houses have also updated their views following Meta’s most recent results. Loop Capital reiterated a Buy rating with a $940 target. Stifel described results as "very healthy," raised its price objective to $820 and kept a Buy stance, pointing out that revenue exceeded the high end of guidance. Evercore ISI increased its target to $900 and cited about a 25% potential upside based on its earnings outlook. Canaccord Genuity adjusted its target to $930 after noting that Meta’s revenue and operating income beat consensus by roughly 3%, with advertising revenue up 23% year over year on a foreign-exchange-neutral basis. DA Davidson raised its target to $850 while maintaining a Buy rating.
Taken together, these analyst actions reflect a broadly positive tone among sell-side firms regarding Meta’s near-term results and medium-term prospects, driven by revenue momentum, AI-related productivity gains, and continued infrastructure investment.
Key points
- KeyBanc raised Meta's price target to $855 from $835 and kept an Overweight rating, citing Q4 results and AI-driven productivity gains.
- Meta is trading at $668.73 with a $1.69 trillion market cap, 82.01% gross profit margin, and 21.27% revenue growth over the past year.
- Several brokerages raised or maintained Buy ratings with price targets ranging from $820 to $940, reflecting broadly positive analyst sentiment across the tech and advertising sectors.
Risks and uncertainties
- Higher operating expenses and capital expenditures - These cost increases were highlighted in the fourth-quarter results and remain a factor for profitability and cash deployment.
- Valuation premium - Meta currently trades at a P/E of 29.65 and a PEG of 4.21, indicating the shares are priced with premium expectations for near-term earnings growth.
- Dependence on AI and infrastructure outcomes - The anticipated revenue additions and improved returns on investment rely on the realization of AI productivity gains and successful infrastructure expansion.