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Investing.com - Barclays has lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $770.00 from $810.00 while maintaining an Overweight rating on the stock. Despite the reduction, the target remains well above Meta’s current trading price of $751.67, with the tech giant now commanding a market capitalization of $1.89 trillion.
The price target reduction follows Meta’s recent quarterly report, which showed revenue exceeding consensus estimates by 4%, alongside guidance for heavier investments in artificial intelligence technology. The company reported $178.8 billion in revenue for the last twelve months, representing impressive growth of 19.37%.
Barclays noted that Meta is currently behind in AI development but believes the company’s new team is well-positioned to bring the company "back to the frontier," though this will come with significant costs that will temporarily reduce free cash flow.
The investment bank highlighted that Meta’s high-margin advertising revenue is performing at industry-leading levels, which helps offset most of the losses from its metaverse and AI investments.
While Barclays expects Meta shares to remain volatile in the near term due to the increased investment cycle and competitive pressures, it anticipates the stock will move higher over the longer term as these investments yield improved AI models and products expected in 2026. With a P/E ratio of 27.11 and a notably low PEG ratio of 0.62, InvestingPro analysis suggests Meta is trading above its Fair Value, though the company’s strong growth profile supports its premium valuation. For deeper insights and 13 additional ProTips on Meta, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Meta Platforms Inc. has reported strong third-quarter 2025 financial results, with advertisement revenue growing approximately 24.5% year-over-year and operating income surpassing expectations. Revenue and adjusted EBITDA also exceeded consensus estimates by about 3.5% and 4.5%, respectively, highlighting a strong performance. Following these results, several analyst firms have adjusted their price targets for Meta. Seaport Global Securities lowered its price target to $850 while maintaining a Buy rating, citing the company’s robust advertisement revenue growth. BofA Securities reduced its target to $810, maintaining a Buy rating but expressing concerns over limited earnings per share growth and free cash flow pressure expected in 2026. Stifel adjusted its price target to $875, noting a higher capital expenditure outlook but acknowledging Meta’s solid earnings performance and improved fourth-quarter revenue guidance. Mizuho lowered its target to $815, maintaining an Outperform rating, due to concerns over increased spending flexibility without sufficient upside to the core business. BMO Capital, however, maintained its price target at $710 with a Market Perform rating, reflecting a steady outlook.
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