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Investing.com - KeyBanc raised its price target on Meta Platforms Inc. (NASDAQ:META) to $800.00 from $655.00 on Thursday, while maintaining an Overweight rating on the stock. The social media giant, currently trading at $702.91 and near its 52-week high of $747.90, has demonstrated impressive financial strength with an industry-leading gross profit margin of 81.77%.
The investment firm expects Meta to report second-quarter revenue of $45.3 billion and anticipates third-quarter revenue guidance in the range of $45 billion to $47.5 billion. KeyBanc is modeling $46.5 billion for the third quarter. These projections align with Meta’s strong momentum, as shown by its 19.37% revenue growth over the last twelve months to $170.36 billion.
KeyBanc has increased its 2025 and 2026 revenue and earnings per share estimates to reflect Meta’s revenue momentum, though the firm remains slightly below consensus due to potential upward pressure on capital expenditures and operating expenses from AI investments. With Meta’s next earnings report scheduled for July 30, investors can access comprehensive analysis and 14 additional key insights through InvestingPro.
The firm introduced 2027 estimates for Meta, projecting revenue of $244.0 billion and earnings per share of $32.01. The new price target of $800 represents 25 times the 2027 estimated price-to-earnings ratio.
KeyBanc noted that while it has concerns about increased AI investment costs, these should not negatively impact the stock if management clearly communicates where the company is seeing returns on its AI investments.
In other recent news, Meta Platforms Inc. has been the subject of several analyst updates. Canaccord Genuity raised its price target for Meta to $850, maintaining a Buy rating, and noted expectations for solid Q2 results with ad revenue growth. Similarly, Cantor Fitzgerald increased its price target to $828, citing anticipated outperformance in the core advertising business and stable year-over-year growth projections for the third quarter of 2025. BofA Securities also adjusted its price target to $775 following Meta CEO Mark Zuckerberg’s announcement about constructing new data centers, indicating confidence in the company’s revenue trajectory.
Citi maintains Meta as a top pick with an $803 price target, highlighting improvements in AI advertising tools despite a slight decline in Instagram Sponsored Reels ad load. These developments come amid Meta’s continued expansion in AI capabilities and infrastructure. The company is also investing heavily in AI talent, with expectations of increased capital expenditures and operating expenses. Analysts have noted that Meta’s new AI tools are delivering more personalized ads with higher conversion rates. The upcoming earnings call is expected to provide more insights into these strategic moves and their impact on Meta’s financial outlook.
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