Meta Platforms to ’unlock new business with AI’ - Oppenheimer raises price target

June 16, 2025 11:55 PM AEST | By Investing

Google News:

Meta Platforms to ’unlock new business with AI’ - Oppenheimer raises price target — Image source: Kalkine Media

Recent News

Mitsubishi reportedly in talks to buy Aethon Energy US assets for $8 b...

Deutsche Bank is now bullish on Cisco - highlights AI tailwinds

Boeing Commercial Airplanes head meets Air India chairman after fatal...

Bravery Over Bladder: Former Marine Tackles Taboo Topic

Investing.com -- Oppenheimer analysts raised their price target for Outperform-rated Meta Platforms (NASDAQ:META) shares to $775 from $665 in a note Monday, citing a “better than feared” macro and advertising environment.

“We are increasing our estimates and price target,” the firm wrote, pointing to stronger ad market conditions compared to six weeks ago.

The analysts raised their FY25 and FY26 revenue estimates by 4% and 1%, respectively, expecting Meta to grow revenue by 17% and 15% ex-FX. This translates to market share gains of “102bp/63bps,” based on projected digital advertising industry growth of 10% in 2025 and 12% in 2026.

Oppenheimer warned that TikTok could pose a “near-term risk, assuming no ban,” while over the long term, Meta may face challenges in artificial intelligence if it “falls behind on AI model development.”

The firm noted that Llama 4 was perceived as a “disappointment” and highlighted Meta’s $14.3 billion acquisition of Scale AI as part of its AI push.

As a result, Oppenheimer now expects Meta to spend heavily on infrastructure, forecasting capital expenditures of $68 billion and $85 billion for 2025 and 2026, respectively. EPS estimates were also raised to $25.41 for 2025 and $28.23 for 2026, reflecting 6% and 11% year-over-year growth.

Oppenheimer’s new $775 price target is based on 27.5 times 2026 EPS, which it said represents “a 3% discount to peers, despite EPS growing 39% slower 2024–2027E.” The firm added that investors remain optimistic about Meta’s ability to “unlock new business with AI.”

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.