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Sell-side on Meta (META): Gains following very-strong revenue figure and better than expected guidance

Meta's latest earnings report has delivered strong revenue figures, leading multiple sell-side analysts to raise price targets significantly, reflecting optimism about AI-driven growth.

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  • Jefferies raises PT to USD 1k (prev. 910) and keeps a ‘Buy’ rating; delivered strong topline upside as AI driven growth reacceleration helps validate the ROI of its mega investment cycle. Adds Meta gave multiple data points showing AI is driving its core flywheel.
  • Citizens maintains PT at USD 900 and ‘Outperform’ rating; notes Meta delivered a strong Q with rev. and guidance well above exp., driven by AI-enhanced ad. performance and accelerating growth into Q1 ‘26. However, sharply higher AI-driven expense growth and reinvestment of profits, incl. the absence of buybacks, create uncertainty around the timing of improved profitability and near-term stock upside.
  • BofA raises PT to USD 885 (prev. 810) and keeps a ‘Buy’ rating; going into the metrics, BofA notes its estimates were above the St. on revenues and expenses and, "for now," revenue strength outweighs cost increases.
  • Piper Sandler raises PT to USD 880 (prev. 840) and keeps an ‘Overweight’ rating; adds it was a very strong Q4 topline and Q1 guide although FY26 OpEx/CapEx were both well above bogeys. Meta remains Piper's top large cap pick.
  • UBS raises PT to USD 872 (prev. 830) and keeps a ‘Buy’ rating; EPS revisions for 2026-2027 are likely to skew upward as Meta begins to realise tangible revenue and product benefits from its AI pillars, particularly ad monetization, engagement gains, and business AI, with upcoming model releases bringing these closer to reality.
  • Cantor Fitzgerald raises PT to USD 860 (prev. 750) and keeps a ‘Overweight’ rating; highlights the strong report, adding while elevated FY26 OpEx and CapEx will pressure near-term margins and FCF, op. income is still expected to grow, with AI-driven monetisation positioning the Co. for attractive returns in 2026-2027.
  • KeyBanc raises PT to USD 855 (prev. 835) and keeps ‘Overweight’ rating; views results as a blue-sky scenario, where higher OpEx and CapEx were more than offset by a revenue growth outlook and multiple stats showing where AI is delivering value. Beneath headline numbers, agentic coding is driving meaningful increases in engineering productivity. Coupled with infrastructure growth, KeyBanc sees over USD 90bln of revenue added between 2025-2027 and ROI concerns subsiding.
  • Mizuho raises PT to USD 850 (prev. 815) and keeps an ‘Outperform’ rating; sees the stock continuing to move higher given Cos. "significantly faster" growth in Q1, op. income growth in 2026, and an acceleration in product velocity, "which could drive further upside." Mizuho sees 50% upside to USD 1.1k in a bull case vs. 35% downside to USD 465 in a bear case.
  • Roth Capital raises PT to USD 850 (prev. 800) and keeps a ‘Buy’ rating; reported a "clean beat" in Q4 and raised Q1 revenue outlook to imply advertising sales growth over 30% Y/Y, fastest since mid-2021. Roth adds Meta's Reality Labs losses will not grow in 2026 vs. 2025, which is a "significant positive inflection" and firm recommends buying shares on Cos. AI catalysts in H1 ’26.
  • Wolfe Research raises PT to USD 850 (prev. 800) and keeps an ‘Outperform’ rating; firm reiterates Meta as one of its top picks for 2026 and Co. is seeing accelerating revenue growth to support its elevated spending. Wolfe sees Meta's AI narrative potentially improving in 2026 and upped estimates after the print.
  • JPMorgan raises PT to USD 825 (prev. 800) and keeps an ‘Overweight’ rating; showed a path to 2026 revenue growth well into the 20% range. JPM believes Meta's Q4 report could put the Co. back on track "toward earning the right to invest."
  • Morgan Stanley raises PT to USD 825 (prev. 750) and keeps an ‘Outperform’ rating; the firm raised FY27 EPS estimate by 10% as META’s investments in engagement and monetization are leading to the fastest growth in 4+ years, when it also notes the business was half the size it is now.
  • Barclays raises PT to USD 800 (prev. 770) and maintains an ‘Overweight’ rating; remarks Cos. "back to business" in Q4 and more impressive than its "massive" spending growth is its ad. Rev. trajectory eclipsing 30% in Q1, which is "papering over many investor concerns". The firm believes Meta continues to set the pace for the digital ad industry, with AI "option value still ahead."
Context

While guidance is robust, concerns remain about rising expenses impacting profitability in the near term, which could affect stock upside strategy. Overall, this strong Q4 performance positions Meta as a compelling choice for investors looking at the digital advertising landscape and AI growth opportunities.

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