Wall Street sentiment toward Meta Platforms (NASDAQ: META) remains constructive after Baird reaffirmed its ‘Outperform’ rating on the stock.
In an investor note dated December 23, the bank slightly lowered its Meta price target to $815 from $820. The revised target implies a potential upside of about 22% from Meta’s press-time price of $663.
According to an analysis by Baird analyst Colin Sebastian, recent market volatility has helped reset expectations, creating a more balanced backdrop for investors willing to position opportunistically ahead of key developments.
Baird acknowledged that near-term sentiment pressures persist but argued that expectations are now more realistic than they were several months ago. This shift, Sebastian noted, improves the risk-reward profile as several catalysts approach.
Key factors to watch include clearer guidance on first-quarter margins, progress on Meta’s next-generation Llama artificial intelligence (AI) model being developed by its research lab, and broader updates tied to Meta AI, including improvements in ranking, relevance, and engagement.
Impact of monetization efforts on META stock
The analyst also highlighted monetization efforts across WhatsApp and Threads as increasingly meaningful drivers, alongside continued expansion in advertising automation through Advantage+ tools. Beyond core platforms, optionality linked to wearables and Meta’s investments in custom silicon was cited as a longer-term source of incremental value.
From a valuation perspective, Baird said the $815 price target is supported by a multi-year discounted cash flow framework, along with multiples of roughly 30 times projected 2026 earnings and 15 times 2026 EV-to-EBITDA.
These assumptions place Meta toward the upper end of peer ranges, which the firm views as justified given the company’s market leadership, margin profile, scale, and diversified growth drivers.
Risks remain, particularly around privacy and usage-related regulatory headlines, as well as Meta’s ongoing strategic emphasis on short-form video, which continues to evolve.
Wall Street bullish on META stock
Overall, Wall Street analysts remain overwhelmingly bullish on Meta Platforms, with a consensus ‘Strong Buy’ rating based on input from 44 analysts tracked by TipRanks.
The average 12-month price target stands at $828.71, implying roughly 25% upside from the recent price. Targets range from a high of $1,117 to a low of $655.15, with 37 ‘Buy’ ratings, six ‘Hold’ ratings, and just one ‘Sell’.
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