Wolfe Research Raises Meta Price Target to $730

Wolfe Research analyst Shweta Khajuria raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $730 (from $670) while maintaining an Outperform rating.

“We remain constructive despite the significant outperformance over the last two years given our view that Street estimates offer upside.

Our thesis: i) We think video unification remains underappreciated based on our detailed analysis, we forecast upside to 2025 Street ests. by MSD $B; ii) We size Threads opportunity as potentially adding LSD $Bs with monetization starting in ’25; iii) TikTok divestiture remains uncertain, but should that happen, we see 8 to 10% upside to EPS; iv) Cleaner AI narrative as multi-year investments have better positioning to show ROIC potential.

We acknowledge the risk of larger-than-expected CapEx investment in ‘25. We estimate ~$58B in ’25 CapEx (vs.

Street at $50B), and we believe shares could be range-bound until the Street has more confidence in sketching out implications on the P&L.

We’re willing to underwrite another step-up in capex given our view on core ranking and algorithm improvements.”

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