MoffettNathanson lifts Meta stock price target to $605

On Thursday, MoffettNathanson adjusted the price target for Meta Platforms Inc. (NASDAQ: NASDAQ:META) shares, increasing it to $605 from the previous $525, while maintaining a Buy rating on the stock. Currently trading at $549, Meta enjoys a strong "Buy" consensus from analysts, with targets ranging from $448 to $935. According to InvestingPro data, the company maintains impressive gross profit margins of 81.7%. The firm’s analysts highlighted Meta’s successful adoption of new technology and a focus on operational efficiency, which have resulted in performance surpassing investor expectations, particularly after a challenging period in 2022.

Meta’s financial results have demonstrated strong top-line growth, margin expansion, and the development of new products, which analysts believe hold potential for future monetization. The firm’s confidence in Meta’s prospects is closely tied to CEO Mark Zuckerberg’s track record of identifying and capitalizing on emerging opportunities. InvestingPro data reveals revenue growth of 21.9% over the last twelve months, with the company generating robust free cash flow of $54 billion.

Despite the positive outlook, MoffettNathanson pointed to a potential turning point for the company, citing concerns about a slowdown in advertising growth due to external factors such as tariff wars and changes in shipping regulations. The company’s guidance indicates a deceleration in organic revenue growth to the low teens from the second quarter of 2025 onward and an increase in total annual costs to between $113 and $118 billion, suggesting a slower pace of profit growth for the latter half of the year.

MoffettNathanson also noted that while Meta’s management reported a cost growth of 9% in the first quarter, the significant investments in depreciation and increased headcount may limit the company’s ability to significantly reduce costs in the near future. The firm remains watchful of how these factors will influence Meta’s financial performance going forward. Despite these concerns, InvestingPro analysis shows Meta maintains a "GREAT" overall financial health score, with particularly strong marks in profitability. Discover 10+ additional exclusive insights and detailed analysis in the Pro Research Report, available with an InvestingPro subscription.

In other recent news, Meta Platforms Inc. reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) reaching $6.43, surpassing the forecasted $5.24. The company’s revenue also exceeded expectations, coming in at $42.31 billion compared to the anticipated $41.48 billion. This strong performance reflects Meta’s strategic focus on artificial intelligence (AI) and product innovation. Meanwhile, Goldman Sachs adjusted its price target for Meta Platforms, raising it from $685.00 to $690.00, while maintaining a Buy rating. The firm cited Meta’s ongoing investments in AI and spatial computing as key growth drivers.

Conversely, Barclays (LON:BARC) lowered its price target for Meta to $640 from $705, although it kept an Overweight rating. The analyst noted that Meta’s first-quarter revenue and earnings per share were above consensus estimates, but expressed caution about potential challenges in the digital advertising market. Despite this, Barclays acknowledged Meta’s significant investments in AI for advertising as a potential advantage. These developments underscore Meta’s commitment to advancing its technological capabilities and strategic priorities in AI and advertising.

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