BofA lifts Meta Platforms stock price target to $690

On Thursday, BofA Securities analyst Justin Post increased the price target for Meta Platforms Inc. (NASDAQ: NASDAQ:META) shares, raising it from $640.00 to $690.00 while maintaining a Buy rating on the stock. Post’s optimistic outlook for the company is based on Meta’s positioning in a challenging economic environment, its AI-driven platform that enhances ad performance compared to its competitors, and the company’s potential for self-help measures to optimize earnings per share (EPS) in the event of a prolonged economic slowdown. The company’s strong positioning is reflected in its impressive 21.94% revenue growth and industry-leading gross profit margins of 81.68%.

Meta Platforms, which closed at an after-hours price of $578, is currently trading at 20 times the analyst’s revised 2026 estimated EPS, which is considered attractive given Meta’s status as an AI leader. This valuation is slightly above the S&P 500 average of 19 times earnings. Excluding Reality Labs (RL), Meta’s valuation falls to 15 times earnings, further underscoring its appeal.

The analyst’s decision to revise the price target upward is rooted in higher estimated earnings and the application of an unchanged 23 times earnings multiple, plus the company’s cash position. When Reality Labs is excluded, the multiple is 19 times, which reflects the core business value minus the augmented and virtual reality divisions. InvestingPro data reveals that Meta maintains strong financial flexibility with more cash than debt on its balance sheet and sufficient cash flows to cover interest payments.

The new price target of $690 suggests a significant upside from the current trading levels and reflects confidence in Meta’s ability to navigate through a softer macroeconomic landscape. This is supported by the company’s ongoing investments and the potential for strategic adjustments aimed at enhancing profitability.

The Buy rating and revised price target by BofA Securities indicate a positive outlook for Meta Platforms, suggesting that the firm believes the company’s stock has the potential to deliver robust returns for investors. The endorsement from BofA Securities comes as Meta Platforms continues to evolve its AI capabilities and seeks to optimize its financial performance amid broader market challenges.

In other recent news, Meta Platforms Inc. reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $6.43 and revenue of $42.31 billion, both surpassing market expectations. Morgan Stanley (NYSE:MS) and Goldman Sachs have expressed confidence in Meta’s strategic direction, with Morgan Stanley raising its price target to $650 and Goldman Sachs to $690, both maintaining positive ratings on the stock. MoffettNathanson also increased its price target for Meta to $605, highlighting the company’s operational efficiency and technology adoption. However, Barclays (LON:BARC) adjusted its price target downward to $640, citing potential challenges in the digital advertising market, though it retained an Overweight rating due to Meta’s strong performance and AI investments. Meta’s management has emphasized their focus on AI and product innovation, which are seen as key drivers of the company’s growth and competitive positioning. Despite some concerns about rising expenses and macroeconomic uncertainties, analysts remain optimistic about Meta’s ability to navigate these challenges. The company’s strategic investments in AI and infrastructure are anticipated to support its long-term growth trajectory.

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