‘It’s Time to Buy,’ Says Morgan Stanley on Meta Stock (META)

Meta Platforms (META) may be facing near-term pressure, but Morgan Stanley believes the stock is now an attractive buying opportunity. In a recent note, top analyst Brian Nowak lowered his price target to $775 from $825 but kept an Overweight rating. His revised price target of $775 still implies a 47% gain from current levels.

Why Morgan Stanley Is Bullish on Meta Despite Near-Term Risks

The analyst said investor sentiment around Meta has weakened in recent months, with the stock down about 20% so far this year due to concerns over its huge infrastructure spending plan. Investors are also unsure about returns from its AI investments and its long-term strategy. More recently, worries about the ad market and possible regulatory risks have added to the pressure.

However, Nowak believes these concerns are already reflected in the stock price. He noted that Meta is now trading at around 15 times its estimated 2027 earnings, which is below its long-term average. In his view, this creates a favorable entry point for investors.

Importantly, the analyst said his earnings estimates already factor in some softness in the ad market. He has reduced ad revenue estimates for 2026 by about 1% to stay conservative. Even with that, the current valuation still looks appealing.

At the same time, he pointed to potential cost savings as another upside factor. Reports suggest Meta could reduce its workforce by about 20%, which may lead to significant savings. If that happens, it could add meaningfully to future earnings or help offset any weakness in advertising.

What Is the Price Target for Meta?

Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 40 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $865.58 per share implies 64.65% upside potential.