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Investing.com - Bernstein analyst Mark Shmulik raised the price target on Meta Platforms Inc. (NASDAQ:META) to $775.00 from $700.00 on Tuesday, while maintaining an Outperform rating on the stock. The new target represents potential upside from Meta’s current trading price of $712.97, with the stock already showing impressive momentum, trading near its 52-week high of $747.90.
The price target increase reflects Meta’s position as "a clear AI winner," with positive advertising checks supporting the company’s claims of improving ad effectiveness, according to Bernstein’s research note.
Meta’s revenue growth potential has been bolstered by the launch of advertisements on WhatsApp and continued strong growth in Threads adoption and engagement, addressing previous concerns about diminishing returns on time spent growth.
The research firm values Meta using a combination of a 2026 estimated EV/Sales multiple of 9.5x and a discounted cash flow analysis with a 9% weighted average cost of capital and 3.5% terminal growth rate, revising 2026 sales estimates from $214 billion to $215 billion.
Bernstein identified several long-term growth drivers for Meta beyond 2025, including generative AI ad creative, business messaging, wearables, and Meta AI, though it noted near-term questions remain about the company’s ability to fund AI infrastructure while protecting earnings per share and free cash flow.
In other recent news, Meta Platforms has seen several updates from investment firms regarding its stock price target. Stifel has raised its price target for Meta to $845, maintaining a Buy rating, and expects positive outcomes in the company’s upcoming earnings report. Similarly, Morgan Stanley (NYSE:MS) increased its target to $750, citing Meta’s advancements in machine learning as a key factor for anticipated growth. Scotiabank (TSX:BNS) also adjusted its target to $675, noting potential revenue contributions from WhatsApp monetization starting in the latter half of the year.
In other developments, Meta has declined to sign the European Commission’s Code of Practice for AI, with concerns over regulatory overreach being cited by Chief Global Affairs Officer Joel Kaplan. Additionally, Meta, alongside other major tech companies, has been questioned by U.S. lawmakers about the security of submarine communications cables potentially serviced by Chinese and Russian entities. These recent developments highlight ongoing strategic and regulatory challenges for Meta Platforms.
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