Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Raymond James has lowered its price target on Meta Platforms Inc. (NASDAQ:META) to $825 from $900 while maintaining a Strong Buy rating on the stock. Meta, currently trading at $751.67, sits just 5.6% below the new target and remains close to its 52-week high of $796.25. InvestingPro data shows the tech giant’s market cap has reached an impressive $1.89 trillion.
The adjustment comes as Meta shows "one of the strongest ad return on GPU spend," according to Raymond James, which noted the company’s top-line performance beat expectations with potential for further monetization gains across its machine learning and deep learning advertising stack. This efficiency is reflected in Meta’s exceptional 81.97% gross profit margin and 19.37% revenue growth over the last twelve months.
Raymond James highlighted several growth opportunities for Meta, including Reels, which has reached a $50 billion run-rate, WhatsApp Status, and Threads ads, with the latter platform now exceeding 150 million daily active users. These growth vectors have helped fuel Meta’s impressive 37.11% price return over the past six months.
The firm cited Meta’s "more aggressive tenor on investment/capex" as likely to constrain near-term margins, free cash flow, and return on invested capital, which prompted the price target reduction despite the Strong Buy rating. Despite these concerns, InvestingPro analysis indicates Meta is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of just 0.62.
Raymond James emphasized that the company’s future performance will place "increased emphasis on GenAI returns," particularly regarding Meta AI, Business AIs, and the competitiveness of its Llama large language model. For investors seeking deeper insights, InvestingPro offers comprehensive Pro Research Reports on Meta and 1,400+ other top stocks, transforming complex data into actionable intelligence for smarter investing decisions.
In other recent news, Meta Platforms Inc. reported its third-quarter 2025 earnings, showing strong advertisement revenue growth of approximately 24.5% compared to the previous quarter’s 22%. Revenue and adjusted EBITDA exceeded consensus expectations by approximately 3.5% and 4.5%, respectively. Despite these positive results, several financial firms have adjusted their price targets for Meta. Barclays lowered its price target to $770, citing increased investments in artificial intelligence technology. Seaport Global Securities also reduced its target to $850, maintaining a Buy rating, while BMO Capital kept its price target steady at $710 with a Market Perform rating. BofA Securities decreased its price target to $810 due to concerns about limited earnings per share growth and free cash flow pressure expected in 2026. Stifel lowered its target to $875, noting a higher capital expenditure outlook but acknowledged Meta’s solid third-quarter performance and improved revenue guidance for the fourth quarter. These developments reflect a cautious but optimistic outlook from analysts regarding Meta’s future financial performance.
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