Meta Platforms Inc. (META) PT Raised to $786 at UBS

UBS analyst Stephen Ju raised the price target on Meta Platforms Inc. (NASDAQ: META) to $786.00 (from $736.00) while maintaining a Buy rating.

He said, "As the 2025 CapEx budget of $60-65B was already preannounced last week alongside the intent to hire technical personnel, we believe that the OpEx and 1Q25 revenue guidance have now set up META shares to exceed estimates on the top and bottom line throughout 2025. We believe what the Street is not yet pricing in are the following: 1) prospects for META to deliver faster ad revenue growth as cons. estimates are likely anticipating that it will add ~ $21.4B during 2025 vs ~$29B in 2024 (even as the compute capacity constraints that prevented faster growth during 2024 are alleviated), and as we look out to 2026 and beyond the potential ROIC from its genAI investments in the form of 2) additional advertising revenue from Meta AI, and 3) business AI-based chatbots. As we have noted previously, the CapEx and OpEx are already in our projections while none of the new sources of revenue have been layered in. We maintain our Buy rating on META shares as we estimate that it is currently offering a 2.5-to-1 skew as we compare the downside risk to $561 and upside potential to $969, and we anticipate that catalysts will arrive throughout the year in the form of: 1) ongoing user adoption of Meta AI (toward 1B+ MAU), 2) faster developed market growth for WhatsApp/Messenger, or 3) product development showcasing monetization path."

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