KeyBanc Lowers Meta Price Target to $835

KeyBanc analyst Justin Patterson lowered the price target on Meta (NASDAQ: META) to $835.00 (from $875.00) while maintaining an Overweight rating.

“We believe OW-rated Alphabet (raise PT to $360) and OW-rated Meta (lower PT to $835) should benefit from AI product cycles in 2026.

However, we believe this is increasingly priced into GOOGL, yet investment and ROI concerns are priced into META, as evidenced by META’s widest P/E discount to GOOGL since 2022 (~7x gap).

With our 2026E/2027E revenue estimates ahead of consensus for both GOOGL (1%/3%) and META (1%/2%), our view is both stocks can work over the year.

As META gets through the wall of worry on opex exceeding $160B (4Q’s print) and the product cycle kicks into gear (spring onward), we see room for upside in META.

For META, we expect the NT to remain contentious on concerns of spending levels (e.g., investors fear $160B+ in opex, or +40% y/y growth); while we are bracing for elevated guidance (we model $157B in opex and $120B in capex), we see product momentum in the spring supporting stronger revenue growth into 2027E.”

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