Analyst Justin Post from Bank of America Securities maintained a Buy rating on Meta Platforms and keeping the price target at $810.00.
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Justin Post has given his Buy rating due to a combination of factors that highlight both Meta’s growth prospects and its current valuation. He notes that while Meta’s share performance has lagged major benchmarks and peers in 2025, earnings expectations for 2026 have moved meaningfully higher, suggesting that the market has not fully recognized this improvement. He emphasizes that upcoming catalysts—such as the company’s 2026 expense guidance and the launch of its next large language model in the first half of 2026—could help reframe investor perceptions around AI spending and its payoff. Post also underscores the company’s robust AI investment strategy, which is expected to translate into greater user engagement, stronger advertising monetization, and incremental business opportunities across Meta’s core platforms.
At the current price level, Post points out that Meta trades at a price-to-earnings multiple for 2027 that is in line with the broader market and below its own historical premium, even as it maintains faster growth and a strong AI positioning. He believes this discount reflects overly cautious sentiment around AI, which could reverse as Meta rolls out its new AI models and product features such as Meta Business AI and agent-based services. He highlights several potential upside drivers, including acceleration in ad revenue from added capacity, new AI tools that enhance content creation and engagement, and better cost controls that limit operating expense growth. While acknowledging risks such as tougher revenue comparisons, competitive pressure, regulatory headwinds, and the possibility of margin pressure from heavy AI investment, Post’s scenario work indicates that the upside potential outweighs the downside, supporting his Buy recommendation.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $810.00 price target.