Analyst Ratings January 29, 2026

Scotiabank Lifts Meta Price Target to $700 After Strong Q4; Keeps Sector Perform

Bank cites robust quarterly results and FX tailwinds as it nudges target higher while other firms raise forecasts amid AI optimism

By Avery Klein META
Scotiabank Lifts Meta Price Target to $700 After Strong Q4; Keeps Sector Perform
META

Scotiabank increased its price objective for Meta Platforms Inc. to $700 from $685 while retaining a Sector Perform rating, following the company's stronger-than-expected fourth-quarter results. The update comes as Meta reported notable revenue growth, provided aggressive first-quarter guidance, and reiterated expectations that fiscal 2026 operating income will top 2025 levels despite planned infrastructure spending. Several other brokerages also moved targets higher, underscoring broad analyst enthusiasm tied in part to AI-driven engagement gains.

Key Points

  • Scotiabank raised its price target on Meta to $700 from $685 but kept a Sector Perform rating.
  • Meta reported 21.3% revenue growth over the past year; Q1 guidance at $56.6 billion implies roughly 33.5% year-over-year growth, including a ~4% FX tailwind.
  • Several other brokerages raised price targets or reiterated positive ratings, citing AI-driven engagement gains and stronger-than-expected Q4 results.

Scotiabank moved its price target on Meta Platforms Inc. (NASDAQ:META) up to $700.00 from $685.00 on Thursday, but left its rating at Sector Perform. At the time referenced in the update, Meta shares were trading at $668.73 and the company carried a market capitalization of $1.69 trillion. InvestingPro data cited in the broker note showed Meta maintaining an 82% gross profit margin.

The bank’s modest upward adjustment follows Meta’s fourth-quarter report, which Scotiabank said was supported in part by favorable foreign exchange effects. Following the earnings release, Meta’s stock jumped by about 10% in after-hours trading. Over the trailing twelve months, the company delivered revenue growth of 21.3%, and the sell-side analyst consensus sits at 1.33 on the provided scale where 1 indicates Strong Buy, reflecting generally bullish sentiment among analysts.

Scotiabank highlighted Meta’s first-quarter revenue guidance at the high end of $56.6 billion, an outlook that implies roughly 33.5% year-over-year growth and sits well above market estimates of around 25%. The company said that this guidance embeds an approximate 4% foreign-exchange tailwind.

Investors have been attentive to Meta’s capital plan, given the company’s intention to sustain significant infrastructure spending. Management addressed this directly by confirming expectations that fiscal 2026 operating income will exceed fiscal 2025 levels, a signal aimed at alleviating concerns about the profitability impact of large-scale investments.

While Scotiabank acknowledged lingering questions about Meta’s longer-term monetization strength, the bank characterized the quarter as "a step in the right direction" and said there was "plenty to get excited about."

Other brokerages responded to the quarterly results and guidance with their own updates. BMO Capital raised its price target from $710 to $730 and maintained a Market Perform rating. BofA Securities increased its target to $885 from $810, explicitly pointing to artificial intelligence as an important driver of returns for the business. RBC Capital kept an Outperform rating, citing Meta’s Q4 revenue beat and firmer first-quarter guidance as evidence that concerns about rising capital and operating expenses for 2026 are being addressed.

Additional firms maintained positive stances on the company. Citizens and William Blair both continued to rate the stock Outperform, emphasizing elements of Meta’s AI strategy and rising user engagement. Citizens highlighted a 30% year-over-year increase in Instagram Reels watch time in the U.S., attributing that lift to AI-driven improvements. William Blair noted that Meta’s Family of Apps surpassed 3.5 billion daily active users in December, accompanied by notable growth in ad impressions.

Collectively, the analyst moves and commentary underscore a broadly constructive reception to Meta’s reported results and near-term outlook. The combination of strong quarterly execution, elevated guidance, expected operating income improvement in 2026, and various firms raising price targets has contributed to an overall uptick in analyst sentiment, even as some concerns about sustained monetization remain.

Risks

  • Persistent uncertainty around Meta's ability to sustain monetization over time could weigh on advertising and digital media sectors.
  • Large-scale infrastructure and capital spending raises questions about operating income trajectories, affecting investors focused on technology and cloud infrastructure investments.

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