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Investing.com - Scotiabank (TSX:BNS) has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $685.00 from $675.00 while maintaining a Sector Perform rating on the stock. According to InvestingPro data, Meta currently trades near its Fair Value, with 10 analysts recently revising their earnings estimates upward for the upcoming period.
Meta reported second-quarter revenues of $47.5 billion, exceeding Wall Street expectations of $44 billion and buy-side estimates of $46 billion. This represents Meta’s largest earnings beat in several years, according to Scotiabank. The company maintains impressive gross profit margins of 81.77% and has generated $170.36 billion in revenue over the last twelve months.
The company provided third-quarter revenue guidance of $49 billion at the midpoint, surpassing analyst consensus estimates of $46 billion. Scotiabank noted that the high end of Meta’s guidance implies revenue acceleration.
Meta significantly increased its capital expenditure forecast, projecting approximately 48% growth for 2026 compared to Street expectations of about 10%. This implies capital spending of roughly $107 billion next year, primarily directed toward artificial intelligence infrastructure.
Despite the positive results and outlook, Scotiabank remains "on the sidelines until we see progress on monetizing the massive capex growth while outpacing the depreciation impact to earnings," according to their research note. For deeper insights into Meta’s valuation and growth prospects, access the full Pro Research Report on InvestingPro.
In other recent news, Meta Platforms has reported robust second-quarter 2025 earnings, with both revenue and adjusted EBITDA surpassing consensus estimates by approximately 6%. Following these strong financial results, several analyst firms have raised their price targets for the company. BMO Capital increased its price target to $710, while maintaining a Market Perform rating. Susquehanna raised its price target to $900, citing Meta’s third-quarter revenue guidance, which projects a 21% year-over-year growth at the midpoint, exceeding prior estimates. Morgan Stanley (NYSE:MS) also adjusted its price target to $850, highlighting improvements in engagement and monetization driven by AI advancements. DA Davidson increased its target to $825, attributing the rise to strong ad growth within Meta’s Family of Apps. Additionally, BofA Securities set a new price target of $900, reflecting higher 2026 earnings per share estimates and increased revenue growth expectations. These developments underscore the positive outlook analysts have for Meta Platforms based on its recent performance and future prospects.
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