Meta Platforms stock price target lowered to $840 by Piper Sandler

Investing.com - Piper Sandler reduced its price target on Meta Platforms Inc. (NASDAQ:META) to $840.00 from $880.00 on Thursday, while maintaining an Overweight rating on the social media giant’s stock. Meta, currently trading at $751.67, has seen its market capitalization reach an impressive $1.89 trillion, with the stock trading near its 52-week high of $796.25.

The price target adjustment follows Meta’s third-quarter results, which Piper Sandler described as "very very impressive," despite concerns about the company’s expense commentary for 2026. The firm projects flat operating income in 2026 and expects free cash flow to decline again. InvestingPro data shows Meta maintains an exceptional gross profit margin of 81.97% and has achieved revenue growth of 19.37% over the last twelve months.

Piper Sandler remains bullish on Meta’s advertising model investments, specifically highlighting GEM, Lattice, and Andromeda. The research firm also noted that the macroeconomic environment appears stable for the company.

The analysts expect Meta’s management to adjust operating expenses and capital expenditure expectations throughout 2026, potentially raising earnings per share and free cash flow. Piper Sandler recommended buying Meta shares on any weakness.

Following the report, Piper Sandler revised its 2026 revenue estimates upward by 3% while reducing EBITDA estimates by 7%, resulting in the new $840 price target, down from the previous $880 target. InvestingPro analysis indicates Meta is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of just 0.62. For deeper insights on Meta’s valuation and 12+ additional ProTips, check out Meta’s comprehensive Pro Research Report, available with an InvestingPro subscription.

In other recent news, Meta Platforms Inc. reported its third-quarter 2025 earnings, which revealed a significant miss in earnings per share (EPS) compared to forecasts. The company announced an EPS of $1.05, falling short of the anticipated $6.68, resulting in an EPS surprise of -84.28%. However, Meta’s revenue surpassed expectations, reaching $51.2 billion, which exceeded the forecasted $49.36 billion and marked a 26% year-over-year increase. Despite these mixed results, Goldman Sachs has lowered its price target for Meta to $815 from $870, while maintaining a Buy rating. Goldman Sachs described the quarter as "mixed," citing strong core business operations but ongoing elevated investment cycles. Oppenheimer downgraded Meta from Outperform to Perform, expressing concerns over the company’s significant investments in artificial intelligence. Oppenheimer drew parallels between these investments and Meta’s previous heavy spending on the Metaverse. These developments highlight the ongoing challenges and opportunities facing Meta Platforms in its investment strategies.

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