Meta Platforms (NASDAQ: META) saw its share price target lowered on Monday, March 30, even though Morgan Stanley dubbed it a “top pick.”
Brian Nowak, the bank’s analyst, now expects Meta shares to trade at $775 a year from now, a figure significantly lower than his past projection of $825.
As argued in the research note, sentiment around Meta has grown weak due to fears about generative artificial intelligence (AI) and the company’s long-term positioning.
However, while uncertainty regarding macro advertisement, market, and regulation has likewise raised a lot of questions in recent times, the analyst argues that Meta will grow faster for longer, suggesting we might be facing a new buying opportunity.
Nowak has kept an “Overweight” rating on the stock, and his new Meta share price target still implies a 45% upside from the current price of $532.
Morgan Stanley’s Meta stock outlook
Meta shares have fallen some 18% over the past month, now trading well below their 52-week high of $796. At current levels, Meta is thus trading at roughly 15 times Morgan Stanley’s 2027 earnings-per-share (EPS) estimate of $36.
As mentioned, though, the bank views the pullback as a potential buying opportunity and says its 2027 EPS forecast already factors in possible macroeconomic weakness. That includes a 1% reduction to its 2026 advertising revenue estimates.
What’s more, the outlook also excludes potential cost savings of $3 billion to $7 billion tied to reported workforce reductions of about 20%, which Nowak believes could translate into more than $1 to 2027 EPS.
New Meta stock price target
Despite the most recent cut on Morgan Stanley’s part, the average META share price target for the next year still translates into an upside potential of nearly 65%, sitting at just north of $864 based on the Wall Street analyses available on TipRanks.
Not only that, but the stock has seen no “Sell” recommendations over the past three months, while no fewer than forty analysts have suggested buying. Accordingly, the Wall Street consensus on Meta right now is “Strong Buy.”
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