Meta Platforms: Accelerating Revenue, Discounted Valuation, and Improving Returns Support Buy Rating

In a report released yesterday, Shweta Khajuria from Wolfe Research reiterated a Buy rating on Meta Platforms, with a price target of $850.00.

Shweta Khajuria has given his Buy rating due to a combination of factors tied to Meta’s strengthening fundamental outlook and attractive valuation setup. He highlights that revenue momentum is accelerating more sharply than previously expected, with management’s guidance implying robust top-line growth supported by better ad relevance, higher engagement, and new product monetization. He also notes that Meta’s shares still trade at a noticeable earnings multiple discount versus key peers such as Alphabet, leaving room for the valuation gap to narrow as execution remains strong and the growth profile improves.

Khajuria further emphasizes that the company’s elevated spending plans on operating expenses and capital expenditures appear conservative and already factor in potential downside scenarios, while management still anticipates operating income to grow year over year. He argues that the peak in Reality Labs losses this year, combined with healthier revenue trends and improving efficiency on capital deployed, should gradually enhance returns on invested capital. Looking out to 2027, he expects solid earnings growth, underpinned by double‑digit revenue expansion and disciplined cost management, supporting the view that Meta can sustain attractive profit growth even against a higher investment backdrop.

In another report released today, TipRanks – OpenAI also upgraded the stock to a Buy with a $767.00 price target.

META’s price has also changed slightly for the past six months – from $717.630 to $668.730, which is a -6.81% drop .