Goldman Sachs Raises Meta Price Target to $668

Goldman Sachs analyst Eric Sheridan raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $668 (from $630) while maintaining a Buy rating.

“Ahead of its upcoming Q4’24 earnings report, we take the opportunity to frame the potential for compounded mid-teens revenue growth and identify key areas of investment ahead of the company’s expected 2025 total GAAP expense and capex guidance.

While we remain focused on increased levels of visibility into rates of investment and return profile, we continue to view META as well-positioned against several long-term secular growth themes incl.

Reels, click-to-messaging Ads and AI (including Advantage+ adoption).

Outside of its core advertising business, we also see upside optionality around several longer-term revenue growth opportunities, including: (a) Meta AI; (b) AI Agents; (c) Reality Labs & d) Llama AI models.

In addition, while not opining about the outcome of the current TikTok litigation to halt/slow the US legislation mandating a divestiture, we do frame an analysis of potential for incremental META revenue if such legislation were to result in lessened competitive intensity.

In terms of forward investments, we expect the company’s compounded capital expenditures and opex investments will continue to grow for the foreseeable future – we expect 2025 total GAAP expenses of $116.1bn (+19% YoY) & total capex of $60.2bn (+53% YoY).

We reiterate our Buy rating & raise our PT from $630 to $688.”

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