Meta Platforms Inc. (META) PT Raised to $775 at Bernstein

Bernstein SocGen Group analyst Mark Shmulik raised the price target on Meta Platforms Inc. (NASDAQ: META) to $775.00 (from $700.00) while maintaining an Outperform rating.

The analyst commented: "Despite some eyebrow-raising offers tied to their high profile AI talent hiring spree, Meta appears to be the easiest name to own in digital ad land. They continue to be a clear AI winner, with positive ad checks supporting company commentary on improving ad efficacy. Questions around diminishing returns of incremental time spend growth have been muted by “finally” launching ads on WhatsApp alongside continued strong growth in Threads adoption and engagement. The debate now shifts towards AI investment intensity and whether the company can fund further infrastructure build-out and resource expenses while protecting EPS/FCF. We expect Meta to deliver revenue growth at or above the top of end of guidance, though see the near-term risk:reward as more balanced for Meta given bottom line questions tied to Meta’s AI ambitions. On a longer-term horizon, Meta's sustainable top line growth, and upside potential across GenAI ad creative, Business Messaging, Wearables, and Meta AI cement Meta as a core Internet holding, with meaningful upside beyond 2025. We remain Outperform, PT $775/ Share (+$75). We value Meta using a 50/50 combination of 2026e EV/Sales multiple of 9.5x, and a DCF using a WACC of 9% and a terminal growth of 3.5%. We revise up our 2026 Sales estimates from $214B to $215B, and our sales multiple from 8x to 9.5x. We consider Meta primarily a digital advertising business and benchmark valuation to comparable peers in this industry set."

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