UBS Raises Meta Price Target to $872

UBS analyst Stephen Ju raised the price target on Meta (NASDAQ: META) to $872.00 (from $830.00) while maintaining a Buy rating.

“With 2026 Operating Expense and Capital Expenditures guidance parameters now set, we submit that 2026-2027 EPS revisions should now skew asymmetrically to the upside, as Meta is set to start realizing the business and product benefits management had previously articulated in terms of its AI revenue pillars (as a reminder): 1) ongoing ad monetization ramp – 2025 dollar growth was $36B with 2026 implied at ~$52B, 2) engagement benefit – given AIgenerated content, better content recommendation, 3) business AI – agentic promotional/support tool for merchants, 4) Meta AI, and 5) AI devices.

With models driving these products to see release in the coming months, we submit the potential benefit from pillars #2-#4 are that much closer to reality – and not yet reflected in our model.

While our OpEx and CapEx estimates do move higher for 2026 and 2027, just on the basis of better ad monetization, we are able to underwrite greater revenue dollar accretion to drive an absolute increase in our EPS estimates.

We hence expect investors to rotate capital back into META shares and we maintain our Buy rating.

The 4Q25 results in our view serves as a clearing event and the path to lighting up new and significant revenue vectors becomes more clear.”

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