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Investing.com - Rosenblatt raised its price target on Meta Platforms Inc. (NASDAQ:META) to $1,086.00 from $918.00 on Thursday, while maintaining a Buy rating on the stock. The new target represents significant upside from the current trading price of $695.21, with Meta maintaining a "GREAT" financial health score according to InvestingPro analysis.
The price target increase represents an 18% boost from the research firm’s previous valuation, following Meta’s second-quarter results for 2025, which Rosenblatt described as "pivotal."
Rosenblatt highlighted the return of over 20% advertising growth for Meta, on a business line that generated $160 billion in 2024, which is now supporting capital expenditures trending toward $100 billion. This growth trajectory aligns with Meta’s impressive 81.77% gross profit margin and 19.37% year-over-year revenue growth.
The new price target is based on an enterprise value of 20 times Meta’s estimated 2026 adjusted EBITDA, supported by an estimated 24% EBITDA compound annual growth rate.
Rosenblatt indicated that EBITDA is becoming a more appropriate measure of Meta’s core cash flow than earnings per share, operating income, or free cash flow, as current capital expenditures are expected to generate future returns and eventually level out.
In other recent news, Meta Platforms reported second-quarter results that surpassed Wall Street expectations, with revenue and earnings per share exceeding consensus estimates by 6% and 21%, respectively. The company’s ad revenue growth increased by 22% year-over-year, excluding foreign exchange impacts. Several analyst firms have adjusted their price targets for Meta following these results. Cantor Fitzgerald raised its target to $920, citing strong earnings, while Guggenheim adjusted its target to $875, maintaining a Buy rating. Scotiabank (TSX:BNS) increased its target to $685, noting Meta’s largest earnings beat in several years. BMO Capital also raised its target to $710, describing the results as "very strong," with revenue and adjusted EBITDA exceeding expectations. Susquehanna set a new target of $900, highlighting Meta’s strong quarterly results and guidance, with third-quarter revenue growth projected to be 21% year-over-year. These developments reflect the positive reception of Meta’s financial performance and future outlook among analysts.
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