Meta stock price target lowered to $810 from $840 by RBC Capital

Investing.com - RBC Capital has lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $810 from $840 while maintaining an Outperform rating on the stock. Meta, currently trading at $669.51 with a market capitalization of $1.66 trillion, remains slightly overvalued according to InvestingPro Fair Value estimates.

The adjustment follows Meta’s challenging third-quarter results, which included a slightly softer fourth-quarter guidance and a significant increase to the company’s 2026 operating expense and capital expenditure outlook. Despite these challenges, Meta maintains impressive gross profit margins of 82% and strong revenue growth of 19.4% over the last twelve months.

RBC Capital noted that Meta’s artificial intelligence product narrative "still screens largely unproven for many investors," though it suggested AI’s effect on core growth may be more durable and underappreciated than currently recognized.

The firm believes the durability thesis for AI supporting core revenue tailwinds into next year could allow the stock to perform well, despite concerns about return on invested capital visibility from incremental monetization opportunities.

RBC Capital raised revenue estimates for Meta while lowering earnings per share projections, with the new $810 price target based on 29 times the company’s projected 2026 earnings per share.

In other recent news, Meta Platforms reported impressive third-quarter 2025 results, with revenue reaching $51.2 billion, marking a 26% year-over-year increase. This performance surpassed analyst expectations by 5%, while adjusted EBITDA also rose by 21% year-over-year to $31.0 billion, exceeding estimates with a 60.6% margin. In a move to support its artificial intelligence infrastructure investments, Meta plans to sell at least $25 billion in investment-grade bonds. Analysts have reacted to these developments with varied perspectives. Rosenblatt raised its price target for Meta to $1,117, citing strong quarterly results and maintaining a Buy rating. Conversely, Raymond James lowered its price target to $825, noting concerns over investment costs but highlighting Meta’s strong advertising performance. Barclays also reduced its price target to $770, maintaining an Overweight rating due to anticipated AI technology investments. Similarly, Seaport Global adjusted its price target to $850, acknowledging robust advertisement revenue growth and better-than-expected operating income.

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