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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $850.00 from $750.00 while maintaining an Overweight rating on the stock. The social media giant, currently valued at $1.75 trillion, trades at a P/E ratio of 26.4x and has seen 10 analysts revise their earnings estimates upward, according to InvestingPro data.
The firm cited Meta’s second-quarter results and third-quarter guidance as evidence that GPU-enabled algorithmic improvements are driving better-than-expected engagement and monetization metrics.
Morgan Stanley increased its revenue estimates for Meta by approximately 3% for 2025 and 4% for 2026, while earnings per share estimates were raised by 5% for 2025 and 9% for 2026.
The investment bank noted that while Meta is increasing investments in both core operations and long-term projects, the company’s improving core business can fund these initiatives while simultaneously driving higher profitability.
Morgan Stanley also raised its bull case scenario for Meta to $1,100, representing 41% upside potential, which would imply a multiple of approximately 31 times the firm’s bull case 2026 earnings per share estimate.
In other recent news, Meta Platforms Inc. reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) reached $7.14, which was significantly higher than the forecasted $5.85, marking a 22.05% surprise. Additionally, Meta’s revenue came in at $47.5 billion, surpassing expectations by 6.26%. Following these strong results, several firms raised their price targets for Meta. DA Davidson increased its target to $825, citing strong ad growth and accelerating growth in Meta’s Family of Apps. BofA Securities also raised its price target to $900, reflecting higher earnings per share estimates and increased revenue growth expectations. Citizens JMP matched this target, highlighting Meta’s unique position to benefit from artificial intelligence advancements. These developments underscore investor confidence in Meta’s future performance.
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