Meta Platforms Inc. (META) PT Raised to $610 at BMO Capital Following Revenue Beat

BMO Capital analyst Brian J. Pitz raised the price target on Meta Platforms Inc. (NASDAQ: META) to $610.00 (from $530.00) while maintaining a Market Perform rating.

The analyst commented: "Video Monetization Efficiency Continues to Lag Despite DeepSeek Breakthrough; Maintain Market Perform rating given: 1) persistent lower video monetization, despite double-digit growth in video engagement, 2) DeepSeek continues to leave investors with more questions than answers, 3) higher-than-expected 2025E OpEx of $114B-119B (vs. BMO $112B) on Creator payouts and continued R&D spend. That said, we increase our estimates and Target Price to $610 from $530, based on a 4% revenue beat in 4Q24.

DeepSeek breakthrough continues to leave investors with more questions than answers — CEO Mark Zuckerberg mentioned, “There's a number of novel things that they {DeepSeek} did that I think we're still digesting,” implying that uncertainty lingers around the effectiveness of greater training efficiency. Further, Capex will continue to rise in the coming years as inference costs remain an open-ended question — we now estimate $65B in 2025E, rising to $75B in 2026E."

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