Guggenheim Reiterates Buy Rating on Meta, Raises PT to $875 from $800.

Guggenheim Reiterates Buy Rating on Meta, Raises PT to $875 from $800.

Guggenheim Securities has maintained its Buy rating on Meta Platforms Inc. (NASDAQ: META) while lowering its price target to $875 from $900. The investment bank cited strong financial performance and growth prospects for the social media giant [1].

Meta's second-quarter results showed accelerated revenue and profit growth. The company reported $20.4 billion in operating income, exceeding consensus estimates by 19%. Third-quarter revenue guidance was also ahead of expectations. Meta's impressive gross profit margin of 81.77% and return on assets of 26.49% underscore its operational efficiency [1].

Guggenheim attributed Meta's financial strength to its industry-leading advertising products, the impact of AI-based tools, and a continued healthy advertising environment. The firm expects investors to view Meta's alignment with CEO Mark Zuckerberg's five-pillar AI strategy as attractive, given its balance of near, intermediate, and longer-term goals. The company's PEG ratio of 0.55 suggests it is attractively valued relative to its growth prospects [1].

Meta's management maintained its 2025 spending guidance largely unchanged while providing early projections for 2026 that exceed current consensus models. The company indicated operating expense growth acceleration and significant capital expenditure growth to approximately $30 billion incrementally in 2025 [1].

In other recent news, several firms have adjusted their price targets for Meta following its second-quarter earnings report. Scotiabank raised its target to $685, BMO Capital increased it to $710, Susquehanna set a new target of $900, Morgan Stanley raised it to $850, and DA Davidson increased it to $825. These developments reflect the positive reception of Meta's recent financial performance and future guidance [1].

References:
[1] https://www.investing.com/news/analyst-ratings/meta-stock-price-target-lowered-to-875-from-900-at-guggenheim-93CH-4163067