KeyBanc Raises Meta Price Target to $800, Sees AI Fueling Future Upside

KeyBanc analyst Justin Patterson has raised Meta's (META) price target to $800 from $655 and kept an "Overweight" rating. He expects strong revenue momentum, but acknowledges potential increased spending on AI investments. Patterson forecasts 2Q revenue at $45.3B and 3Q guidance for $45B-$47.5B, raising 2025E and 2026E revenue and EPS estimates.

KeyBanc analyst Justin Patterson has raised Meta Platforms Inc.'s (NASDAQ: META) price target to $800 from $655, maintaining an "Overweight" rating on the stock. Patterson's updated target reflects strong second-quarter ad trends, stable macro conditions, and momentum in AI initiatives. The analyst expects 2Q revenue to come in at $45.3 billion and 3Q revenue guidance for $45 billion to $47.5 billion. Patterson has also increased his 2025 and 2026 revenue and earnings per share (EPS) estimates, anticipating a better-than-expected performance driven by resilient ad spending and improving travel trends. Despite potential upward pressure on capital expenditures and operating expenses from AI investments, Patterson remains bullish on Meta's future growth prospects.

Patterson's updated target is based on projected Q2 revenue of $45.3 billion and Q3 guidance of $46.5 billion. He forecasts 2027 revenue of $244 billion and EPS of $32.01, noting that while AI investments may increase costs, they are expected to drive significant returns. KeyBanc believes that as long as Meta can clearly communicate the value of its AI investments, the stock should not be negatively impacted.

The analyst's optimism is shared by several other firms. Canaccord Genuity raised its price target for Meta to $850, citing expectations for solid Q2 results and optimism around AI initiatives. Cantor Fitzgerald increased its price target to $828, noting anticipated outperformance in the core advertising business and stable year-over-year growth projections for the third quarter of 2025. BofA Securities adjusted its price target to $775 following Meta CEO Mark Zuckerberg's announcement about constructing new data centers, indicating confidence in the company's revenue trajectory. Citi maintains Meta as a top pick with an $803 price target, highlighting improvements in AI advertising tools despite a slight decline in Instagram Sponsored Reels ad load.

Meta's stock is currently trading at $704.95, up 0.29% from the previous close. The company's strong financial performance and continued investment in AI are driving analyst optimism. However, investors should be mindful of potential regulatory headwinds and the risk of over-investment in AI technologies.

References:
[1] https://www.investing.com/news/analyst-ratings/meta-platforms-stock-price-target-raised-to-800-from-655-at-keybanc-93CH-4138808
[2] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46474171/meta-advertising-strength-and-ai-investments-could-drive-future-growth-analyst
[3] https://ca.finance.yahoo.com/news/keybanc-lifts-meta-meta-800-130752728.html
[4] https://www.ainvest.com/news/meta-ai-gamble-billions-spending-pay-2507/