Mizuho Stays Bullish on Meta Platforms Stock, But Lowers Price Target. Here’s Why

Social media platform Meta Platforms (META) recently reported better-than-expected first-quarter results but spooked investors by raising its capital expenditure outlook. The company is making massive investments to stay competitive in the AI race. On Tuesday, top Mizuho analyst Lloyd Walmsley reiterated a Buy rating on Meta Platforms stock, but lowered his price target to $835 from $850 amid concerns about high capital spending. Let’s look at the analyst’s views on META stock.

Top Mizuho Analyst Weighs in on META Stock

Walmsley is positive on META stock and expects the company to roll out more AI products that will clarify what it plans to do with its new and improved large language model (LLM) and how it intends to eventually monetize it.

The 5-star analyst also likes Meta Platforms’ aim to build customer-focused agentic AI for everyday users, while major AI labs increasingly focus on enterprise customers. He also reacted positively to the company’s commentary on a surge in Meta AI usage since the launch of Muse Spark.

The analyst believes that it is important for Meta Platforms to clearly show its product roadmap and user adoption, and/or start controlling its costs and capex growth before it announces its Q2 results and issues third-quarter guidance, especially as it will face significantly tougher comparisons. Walmsley cautioned that if growth peaks in Q2 2026 and the company doesn’t deliver on product development or cost control, it could impact META stock’s valuation and put pressure on the share price.

Is META Stock a Good Buy Now?

Despite concerns about elevated AI spending, Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 30 Buys and seven Holds. The average META stock price target of $822.60 indicates 36% upside potential. META stock is down 9% year-to-date.