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Investing.com - BMO Capital raised its price target on Meta Platforms Inc. (NASDAQ:META) to $710.00 from $610.00 on Thursday, while maintaining a Market Perform rating on the stock. Meta, a prominent player in the Interactive Media & Services industry, currently shows a "GREAT" financial health score according to InvestingPro analysis.
The price target increase follows Meta’s second-quarter 2025 results, which BMO described as "very strong," with both revenue and adjusted EBITDA exceeding consensus estimates by approximately 6%.
Meta’s third-quarter 2025 revenue guidance also impressed, coming in 6% above Street expectations at the midpoint of the forecast range.
BMO Capital highlighted rising capital expenditures and operating expenses from AI investments as a key risk for Meta, with management implying approximately $100 billion in capital expenditures for fiscal year 2026, up from BMO’s previous estimate of $75 billion.
The research firm expressed concern that "META’s AI monetization opportunity is less clear compared to hyperscalers" and noted that "a possible U.S.-TikTok deal" represents "a clear headwind to META’s recent success."
In other recent news, Meta Platforms has seen a series of analyst upgrades following strong earnings and revenue results. Susquehanna raised its price target for Meta to $900, citing the company’s robust quarterly performance and optimistic guidance for the third quarter. Meta’s projected third-quarter revenue growth of 21% year-over-year exceeded both Susquehanna’s and consensus expectations. Similarly, Morgan Stanley (NYSE:MS) increased its price target to $850, highlighting improvements in algorithmic engagement and monetization driven by AI advancements. DA Davidson also lifted its target to $825, attributing it to strong ad growth and better-than-expected second-quarter earnings. BofA Securities upped its target to $900, reflecting higher earnings per share estimates and revenue growth expectations. Citizens JMP raised its price target to $900 as well, emphasizing Meta’s strategic advantage in leveraging artificial intelligence. These developments underscore a positive outlook for Meta’s financial trajectory.
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