Meta: Rosenblatt Reiterates Buy Rating, Raises PT to $1086 from $918

Meta: Rosenblatt Reiterates Buy Rating, Raises PT to $1086 from $918

Meta Platforms Inc. (NASDAQ: META) continues to attract analyst optimism, with Rosenblatt Securities reiterating its "Buy" rating and raising its price target to $1086 from $918. This move reflects the firm's confidence in Meta's strategic initiatives and the company's strong performance in the second quarter of 2025.

The upgrade comes after Meta reported Q2 earnings that significantly exceeded Wall Street expectations. The company's earnings per share (EPS) of $7.14 surpassed the Street's estimate of $5.88, marking a 38% year-over-year increase from $5.16. Revenue surged to $47.5 billion, beating forecasts of $44.8 billion and registering a 22% year-over-year growth. Core metrics, including daily active users, ad impressions, and price-per-ad, all outperformed consensus, indicating robust performance across Meta's platforms.

Rosenblatt's optimism is driven by several factors. The firm highlights Meta's ongoing investments in artificial intelligence (AI) and superintelligence, which are expected to drive future growth. Meta has allocated substantial resources to AI, with $17 billion spent on data centers and infrastructure in the second quarter alone, and plans to spend between $66–$72 billion in 2025. These investments are aimed at developing advanced AI capabilities that can outperform humans in various intellectual tasks.

Moreover, Meta's commitment to renewable energy and its net zero plan by 2030 is another factor contributing to Rosenblatt's positive outlook. The company's reliance on renewable energy is not only environmentally responsible but also helps reduce operational costs. As of 2023, Meta's global operations are supported by 100% renewable energy, and the company aims to achieve a net zero carbon footprint through its data centers and other operations.

The analyst also points to Meta's ability to generate substantial free cash flow (FCF). In 2024, Meta recorded a record FCF of $52.1 billion, up from $21 billion in 2019, indicating a strong focus on efficiency and profitability. This record FCF is expected to sustain and grow in the coming years, providing a solid financial foundation for the company's growth initiatives.

Rosenblatt's price target of $1086 represents a 33.18% increase from the current share price, reflecting the firm's bullish stance on Meta's prospects. The upgrade comes as Meta continues to expand its AI capabilities, enhance its renewable energy initiatives, and maintain strong financial performance.

References:
[1] https://247wallst.com/technology-3/2025/07/30/meta-platforms-meta-price-prediction-and-forecast-2025-2030/
[2] https://www.tradingview.com/news/tradingview:1e398274b094b:0-meta-meta-stock-surges-12-on-earnings-beat-here-comes-record-2-trillion-market-cap/