Meta Platforms: AI-Driven Growth and Operating Momentum Support Upside to Raised $885 Target and Justify Buy Rating

Bank of America Securities analyst Justin Post reiterated a Buy rating on Meta Platforms today and set a price target of $885.00.

Justin Post has given his Buy rating due to a combination of factors tied to Meta’s operating momentum and outlook. Meta’s latest quarter delivered revenue and earnings that clearly surpassed market forecasts, with advertising growth materially outpacing the broader sector and operating income benefitting from lower costs. Management also issued first-quarter guidance that implies a meaningful acceleration in growth, underpinned by multiple AI models that are boosting engagement and advertising effectiveness. Despite outlining a sizeable step-up in future spending and capital investments, the company indicated it still expects profit growth in 2026, signaling that expenditures are aligned with strong revenue trends and remain flexible if conditions change.
Post is also constructive on the long-term earnings trajectory and valuation. He raised his 2026 revenue and EPS estimates, as well as his 2027 EPS forecast, reflecting confidence that revenue strength can more than offset higher costs. The new price objective of $885 incorporates these higher earnings projections while applying a slightly lower multiple in line with sector re-rating, yet still leaves meaningful upside from current trading levels. Additionally, Post highlights that AI-driven initiatives, a powerful infrastructure build-out funded by internal cash flow, an expanding product pipeline beyond advertising, and an anticipated peak in Reality Labs losses together support a favorable risk-reward profile. At current multiples that approximate historical averages, he views Meta’s core advertising franchise and AI investments as not fully priced in, justifying a Buy recommendation.

In another report released today, TipRanks – PerPlexity also upgraded the stock to a Buy with a $794.00 price target.

Based on the recent corporate insider activity of 244 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of META in relation to earlier this year.