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Investing.com - Seaport Global Securities has lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $850.00 from $900.00 while maintaining a Buy rating on the stock. This adjustment aligns with InvestingPro data that suggests Meta is trading above its Fair Value, though the company maintains a "GREAT" overall financial health score.
The adjustment follows Meta’s third-quarter 2025 results, which showed strong advertisement revenue growth of approximately 24.5% FXN compared to 22% in the second quarter, along with operating income that exceeded expectations. This performance builds on Meta’s impressive 19.37% revenue growth over the last twelve months, with the company generating $178.8 billion in revenue while maintaining an exceptional 81.97% gross profit margin.
Despite the positive revenue performance, Meta shares declined in after-hours trading due to higher operating expense and capital expenditure guidance, particularly for 2026, as the company aggressively invests in its artificial intelligence initiatives. At a current P/E ratio of 27.11 and a favorable PEG ratio of 0.62, InvestingPro identifies Meta as trading at a low P/E ratio relative to near-term earnings growth – one of 13+ ProTips available for this $1.89 trillion market cap giant in the comprehensive Pro Research Report.
Seaport Global noted that Meta is increasing capital expenditures to provide more flexibility for capacity it may need in 2027 and 2028, reflecting the company’s long-term infrastructure planning.
The research firm remains positive on Meta despite the increased expenses, citing expectations for "continued solid ad growth, engagement strength, and option value with AI investments" as key factors supporting its maintained Buy rating.
In other recent news, Meta Platforms Inc. reported a strong performance for the third quarter of 2025, with revenue and adjusted EBITDA surpassing consensus expectations by approximately 3.5% and 4.5%, respectively. Additionally, the company provided slightly improved fourth-quarter revenue guidance at the midpoint. Despite these positive results, several analysts have adjusted their price targets for Meta. BMO Capital maintained its Market Perform rating with a price target of $710. BofA Securities lowered its price target to $810, citing limited earnings per share growth outlook and pressure on free cash flow expected in 2026. Stifel reduced its price target to $875, maintaining a Buy rating and noting a higher capital expenditure outlook. Mizuho also lowered its price target to $815, expressing concerns about Meta’s shift in investment strategy without sufficient upside to the core business. Lastly, KeyBanc adjusted its price target to $875, reflecting on concerns about future capital and operating expenditures.
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