Meta Platforms (NASDAQ: META) has kicked off the year with a strong start, rising over 6% year-to-date.
The social media giant continues to be a favorite among analysts, who view its investments in artificial intelligence (AI) as a long-term growth driver, despite concerns over hefty spending.
With a focus on the advertising segment and growing user engagement, Meta has maintained strong bullish sentiment from Wall Street.
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Now, just six days ahead of its January 29 earnings call, several highly-rated equity analysts have revised their price targets for Meta stock, with the majority highlighting a positive outlook on the company’s prospects.
As of the market close on January 22, Meta’s stock stood at $623.50, ticking up slightly in premarket trading to $624.65, a marginal 0.18% increase. This leaves the stock approximately 1.44% below its all-time high (ATH) of $632.68, reached on December 11, 2024.
Analysts express optimism on Meta’s growth potential
Analysts continue to express optimism about Meta Platforms revising price targets and highlighting the company’s long-term potential despite near-term challenges
Jefferies analyst Brent Thill has reaffirmed his bullish stance on META, reiterating a ‘Buy’ rating and maintaining an ambitious price target of $715.
The firm pointed to long-term opportunities for the social media giant, despite some expected short-term pressures on free cash flow as the company outlines its fiscal year 2025 capital expenditure and expense guidance.
However, analysts view this as a low point, anticipating significant returns on these investments in the coming years.
Meta’s advertising potential remains a key focus for analysts, particularly with Instagram Reels gaining traction in markets where TikTok faces a ban. Jefferies’ ad checks indicate that the platform is effectively capturing user engagement, especially among younger demographics.
“Our ad checks remain bullish on META and our convos with teens indicate that TikTok’s ban is driving them to IG Reels. Reiterate Buy, PT $715 = 24x our FY26 EPS.”
Cantor Fitzgerald lowers target but maintains confidence
Cantor Fitzgerald, however, slightly revised its price target for Meta, lowering it from $730 to $720. Despite the revision, the firm continues to maintain an Overweight rating on the stock.
Analyst D. Mathivanan projected Meta’s earnings per share (EPS) for fiscal year 2025 to be $25.53, signaling strong expectations for the company’s performance. This projection exceeds the consensus estimate for Meta’s full-year earnings in 2024, which stands at $22.96 per share.
Raymond James sees AI as a game-changer for Meta
Raymond James joined the bullish consensus, raising its price target from $675 to $725 and reiterating a Strong Buy rating. The firm highlighted Meta as one of its top picks within the internet sector, pointing to 2025 as a crucial year for generative AI commercialization.
According to the firm, concerns around capital expenditures could diminish as assistant-oriented AI evolves into more advanced applications across consumer and enterprise software, as well as hardware technologies.
While acknowledging ongoing uncertainties, including tariffs, AI regulation, antitrust risks, and TikTok’s future, the firm noted that a steadier macroeconomic environment provides a supportive backdrop for Meta’s growth trajectory.
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