Meta Platforms Stock Price Target Hiked by Top Analysts Ahead of Q2 Earnings

Top analysts from Jefferies and Canaccord Genuity have boosted Meta Platforms' stock price target ahead of Q2 earnings, with Jefferies raising its target to $845 and Canaccord to $850. Both analysts reaffirmed a Buy rating, despite a shareholder lawsuit and expectations of $5.84 EPS, a 13.2% YoY growth. The analysts are optimistic about Meta's Q2 earnings, driven by growth in ad revenue, AI-driven improvements, and a favorable CPM.

Title: Analysts Boost Meta Platforms' Stock Price Target Ahead of Q2 Earnings

Top analysts from Jefferies and Canaccord Genuity have raised their stock price targets for Meta Platforms (META) ahead of the company's Q2 2025 earnings report. Jefferies increased its target to $845, while Canaccord Genuity raised its target to $850, both reaffirming a Buy rating [1][2]. This move comes despite a shareholder lawsuit and expectations of $5.84 EPS, a 13.2% year-over-year (YoY) growth.

The analysts are optimistic about Meta's Q2 earnings, driven by growth in ad revenue, AI-driven improvements, and a favorable cost per thousand impressions (CPM). Jefferies and Canaccord Genuity expect Meta's ad revenue to grow by approximately 14% YoY in Q2, despite a modest quarter-over-quarter deceleration partly due to tariff-driven uncertainty affecting budget deployments earlier in the quarter. Both analysts also anticipate total revenue to increase by around 14% YoY, with expected operating income of $16.7 billion, representing a 37.5% margin [3].

Meta Platforms has been investing heavily in AI to compete with OpenAI and Perplexity, shifting its focus from social media to AI innovation. The company has allocated hundreds of billions of dollars to drive AI innovation, aiming to transform itself into an AI powerhouse [2]. This investment includes the development of advanced AI technologies, the creation of a team of leading AI experts, and strategic acquisitions like the recent acquisition of PlayAI [2].

Despite the near-term financial risks associated with these investments, analysts believe that Meta's AI-generated advertising has the potential to deliver substantial annual recurring revenue, compounding on its existing advertising business across its social media platforms [2]. The company's AI-driven improvements to content creation and ad recommendation models, such as the new generative ads recommendation model introduced in Q1, are expected to continue boosting efficiency and revenue growth [3].

Meta Platforms' stock has performed exceptionally well year-to-date, outpacing most peer hyperscalers net of Microsoft (MSFT). The company's shares trade towards the upper end of the hyperscaler cohort at 20.18x EV/EBITDA, just below the peer average of 21.82x and above its historical midpoint of roughly 19x [2]. Despite the current trading premium and the growth outlay ahead, Canaccord believes the setup remains compelling, particularly moving into fiscal [3].

References:
[1] https://www.ainvest.com/news/meta-q2-earnings-ai-user-growth-outpace-regulatory-headwinds-2507/
[2] https://www.ainvest.com/news/meta-platforms-invests-heavily-ai-compete-openai-perplexity-2507/
[3] https://www.investing.com/news/analyst-ratings/meta-platforms-stock-price-target-raised-to-850-from-825-at-canaccord-93CH-4137798