Social media giant Meta Platforms (META) impressed investors with solid Q4 results and consequently scored multiple price target hikes. Also, Benchmark analyst Mark Zgutowicz upgraded META stock to Buy from Hold with a price target of $820, citing a robust 2025 core business outlook. He believes that Meta’s AI infrastructure investments and its core ad strength offer multiple growth catalysts for 2025 and beyond.
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Interestingly, Zgutowicz is “intrigued” by the initial development of AI engineering agents that can code and solve problems like “a good mid-level engineer.” He looks forward to more discussion on the potential efficiencies these agents can bring to Meta Platforms’ research and development (R&D) line.
Analysts Are Incrementally Positive on META Stock
In reaction to the Q4 print, Evercore ISI analyst Mark Mahaney reiterated a Buy rating on Meta Platforms stock and increased the price target to $725 from $700, citing the company’s significant earnings beat. While the company is experiencing notable forex headwinds and aggressive capex, Mahaney believes that it is “doing this from a Clear Position of Strength.”
The analyst thinks that Meta Platforms’ long-term growth story is intact based on several strengths, including a robust online ads market, impressive user and engagement growth, growing monetization, and solid execution. He also sees a lot of untapped monetization opportunities in Threads, Meta AI, WhatsApp, and Facebook Marketplace, among others.
Likewise, UBS analyst Stephen Ju reaffirmed a Buy rating on META stock and boosted the price target to 786 from $736. Ju contends that Wall Street is not yet pricing in certain positives, like the prospects for META to deliver faster ad revenue growth, additional ad revenue from Meta AI, and business AI-based chatbots. He expects favorable catalysts to emerge throughout the year, including the ongoing user adoption of Meta AI, rapid growth in developed markets for WhatsApp and Messenger, and product development reflecting the monetization path.
Further, Wells Fargo analyst Ken Gawrelski increased the price target on META stock to $752 from $685 and maintained a Buy rating. The analyst contended that the concerns over the company’s ad growth seem unwarranted, as the high end of the Q1 2025 outlook implies only three percentage points of deceleration in forex-neutral growth. He stated that the Meta Platforms continues to fire on all cylinders and can capitalize on ad pricing strength to fuel healthy revenue growth throughout this year.
Is Meta Stock a Buy, Hold, or Sell?
Overall, Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 42 Buys, three Holds, and one Sell recommendation. The average META stock price target of $749.38 implies 9% upside potential. Shares have rallied about 72% over the past year.
