Meta (NASDAQ: META) stock has had a volatile start to the year, and is, at press time, only 0.48% up in the year-to-date (YTD) chart and changing hands at $663.27.
Still, despite META share price fluctuations, Wall Street has remained overwhelmingly bullish about the social media powerhouse.
Such optimism is, perhaps, best exemplified by the latest META stock 12-month price target revision, considering that James Cordwell of Rothschild Redburn not only raised his rating from ‘Hold’ to ‘Buy,’ but also skyrocketed his valuation forecast from $740 to $900 on January 26.
Should Cordwell’s prediction come true, it will mean that Meta shares managed a 35% rally in 2026 – significantly better than the 13% recorded in 2025.
Why Rothschild Redburn rates Meta stock as ‘Buy’
Interestingly, the Wall Street expert’s analysis explained that Meta’s stock is in danger of high short-term volatility and even a downturn due to the potentially destabilizing drive to expand artificial intelligence (AI) operations.
Any significant investments in AI are, in the short-term at least, likely to include a massive capital expenditure with little to show in return between the costs to build, supply, and power up data centers.
Despite these short-term risks, however, Rothschild’s Cordwell is a long-term optimist as he noted that, with its early 2026 process hovering close to to $650, Meta is relatively undervalued and holds substantial growth potential in the coming 12 months.
Such a sentiment is relatively widespread on Wall Street. Considering it is trading at approximately 20 times its forward earnings, Meta stock is undervalued compared to megacap peers.
Under the circumstances, it appears easy to see why the analyst consensus rates the equity as a ‘Strong Buy.’
Similarly, Meta’s relatively low valuation backs the 24.64% average forecasted upside and the overall 12-month price target of $821.11.
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