Meta Platforms stock price target lowered to $875 by KeyBanc

Investing.com - KeyBanc has lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $875.00 from $905.00, while maintaining an Overweight rating on the stock. Meta currently trades at $751.67, representing potential upside of 16.4% to KeyBanc’s new target, though InvestingPro data suggests the stock is slightly overvalued at current levels.

The adjustment follows Meta’s third-quarter 2025 earnings call, which KeyBanc analyst Justin Patterson compared to the company’s third-quarter 2022 call, when commentary about future capital and operating expenditures raised concerns about earnings potential and capital allocation.

KeyBanc acknowledged that the lack of clarity regarding next year’s investments could create a near-term overhang for the stock.

Despite these concerns, the firm remains positive on Meta’s growth drivers, specifically noting that Advantage+ has reached a $60 billion run rate and Meta AI has surpassed 1 billion monthly active users.

The new price target of $875 represents a 25.5x price-to-earnings multiple based on KeyBanc’s 2027 estimates, reflecting the firm’s belief that Meta’s strengths should translate into meaningful revenue and free cash flow growth over the coming years.

In other recent news, Meta Platforms Inc. reported third-quarter results that surpassed expectations, with the company emphasizing the role of artificial intelligence in boosting engagement, ad impressions, and ad pricing. Following these results, Pivotal Research reiterated its Buy rating for Meta, setting a price target of $930. Baird also maintained an Outperform rating with a price target of $820, although it noted potential margin decreases in 2026 due to increased capital and operating expenses related to advancements in artificial general intelligence. Meanwhile, Piper Sandler lowered its price target to $840, maintaining an Overweight rating, and described the third-quarter results as impressive despite concerns about future expenses. Oppenheimer downgraded Meta from Outperform to Perform, citing significant AI investment concerns and comparing them to past Metaverse spending. Additionally, Goldman Sachs adjusted its price target to $815, maintaining a Buy rating, and described Meta’s quarter as mixed, with strong core operations but continued high investment levels. These developments reflect varied analyst perspectives on Meta’s strategic direction and financial outlook.

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