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Investing.com - BofA Securities lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $810 from $900 while maintaining a Buy rating on the stock. Meta, currently trading at $751.67, remains near its 52-week high of $796.25 and has delivered an impressive 37.11% return over the past six months.
The firm cited limited earnings per share growth outlook and year-over-year free cash flow pressure expected in 2026 as factors behind the adjustment.
Despite these concerns, BofA believes Meta remains in a position of strength with its massive user network and opportunities to integrate compelling AI products, including content creation tools, over the next two years. With $178.8 billion in revenue and an exceptional 81.97% gross profit margin, Meta continues to demonstrate financial strength.
The firm suggests that negative news regarding expenses is now mostly reflected in the stock price, while upcoming product catalysts, including a new large language model and content creation tools, could drive increased engagement and revenue in 2026.
BofA noted that at Meta’s after-hours price of $695, the company is valued at 10.5 times estimated 2027 EBITDA and 19 times estimated 2027 core business earnings per share, metrics that could help support the stock. Currently trading at a P/E of 27.11, InvestingPro analysis indicates Meta is trading above its Fair Value, though its PEG ratio of 0.62 suggests reasonable valuation relative to growth. For deeper insights on Meta and 1,400+ other stocks, explore comprehensive Pro Research Reports on InvestingPro.
In other recent news, Meta Platforms Inc. reported solid third-quarter earnings, with revenue surpassing the high end of guidance and GAAP earnings per share exceeding expectations, excluding a one-time tax charge. The company also offered slightly improved fourth-quarter revenue guidance at the midpoint. Analysts have responded with various adjustments to their price targets for Meta. Stifel lowered its price target to $875, maintaining a Buy rating, while Mizuho reduced its target to $815, citing concerns over increased spending without sufficient upside. KeyBanc also adjusted its target to $875, maintaining an Overweight rating, reflecting concerns about future capital and operating expenditures. Pivotal Research reiterated a Buy rating with a $930 price target, highlighting AI’s benefits to engagement and ad metrics. Lastly, Baird maintained an Outperform rating with an $820 price target, noting potential margin decreases due to Meta’s investment in artificial general intelligence and AI capabilities. These developments reflect the varied analyst perspectives on Meta’s financial and strategic direction.
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