On Thursday, Piper Sandler adjusted its outlook on Meta Platforms Inc. (NASDAQ: NASDAQ:META), increasing the price target to $650 from $610 while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for Meta range from $448 to $935, with the stock currently trading near $549. The adjustment follows Meta’s recent financial performance, which surpassed expectations, and the company’s guidance for the second quarter of 2025, which suggests continued growth despite prevailing economic uncertainties.
Meta’s financial results for the first quarter revealed that both revenue and EBITDA exceeded analyst forecasts by 2% and 14%, respectively. The company’s impressive gross profit margin of 81.68% and revenue growth of 21.94% demonstrate strong operational efficiency. This performance is seen as a strong indicator of the company’s resilience and potential for sustained growth. CEO Mark Zuckerberg’s commitment to advancing Meta’s AI initiatives was highlighted as a key factor in the company’s forward momentum. The increased capital expenditures are intended to expedite the development and deployment of more computing resources to support these AI-driven projects.InvestingPro analysis shows Meta maintains excellent financial health with a "GREAT" overall score, supported by strong cash flows and solid balance sheet metrics. Subscribers can access 12 additional ProTips and comprehensive financial analysis in the Pro Research Report.
Notably, Meta’s trends for the month of April have been reported as healthy, although the guidance range for the second quarter was broadened. This move acknowledges the ongoing uncertainty in the market, yet the company remains optimistic about its future performance.
The revised price target of $650 reflects Piper Sandler’s confidence in Meta’s strategic focus and the anticipated positive impact of its AI investments on future earnings. The firm’s reiteration of the Overweight rating indicates a bullish stance on the stock, suggesting that Meta Platforms is well-positioned to outperform the market.
In other recent news, Meta Platforms Inc. has seen a series of analyst updates following its financial performance. Raymond James analyst Josh Beck adjusted the company’s price target to $750, down from $800, while maintaining a Strong Buy rating. This revision comes amid Meta’s reported foreign exchange neutral growth of 19% in Q1 and an expected 12% growth in Q2. Stifel analysts raised their price target from $628 to $655, citing Meta’s Q1 revenues that exceeded expectations and a broader revenue outlook despite uncertainties in the tech sector. BofA Securities also increased their price target to $690, emphasizing Meta’s AI-driven platform and its potential for earnings optimization in a challenging economic environment. Morgan Stanley lifted their target to $650, highlighting Meta’s robust performance and slight increases in advertisement revenue estimates for 2025 and 2026. Lastly, MoffettNathanson raised the price target to $605, noting Meta’s operational efficiency and new technology adoption, though they expressed concerns about a potential slowdown in advertising growth. These developments reflect a general confidence in Meta’s strategic initiatives, despite varying economic challenges.
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