JPMorgan Raises Price Target on Meta Platforms’ Stock (META), Citing ‘Growth Potential’

JPMorgan Chase (JPM) has raised its price target on Meta Platforms (META) stock, saying the technology company has plenty of “growth potential.”

JPMorgan, which is the world’s largest bank, lifted its price target on META stock to $735 from $675 previously and maintained a Buy-equivalent outperform rating on the shares. In raising the price target, a team of analysts at JPMorgan singled out the company’s strong position in the social media landscape and its strategic focus on long-term growth opportunities.

The analysts also highlighted Meta’s extensive reach and engagement, which continues to produce network effects and attract advertising dollars. They added that Meta Platforms should be attractive to investors as a long-term blue-chip company.

AI Expansion

Other reasons to be bullish on META stock include the company’s industry-leading gross profit margin of 82% and robust revenue growth of nearly 20% over the last 12 months. Plus, the company is making significant advancements in the areas of artificial intelligence (AI), with hefty investments in the area.

Despite AI infrastructure investments of as much as $65 billion this year, JPMorgan Chase still projects strong revenue and earnings per share growth for Meta Platforms through 2026, citing the tech giant’s track record of generating returns from increased spending. Meta should continue delivering value to its shareholders, concluded JPMorgan.

Is META Stock a Buy?

The stock of Meta Platforms has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 41 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $697.55 implies 2.31% upside from current levels.

Read more analyst ratings on META stock