Guggenheim Reiterates Buy Rating on Meta, $850 Price Target
Guggenheim analyst Michael Morris reiterated a Buy rating and $850.00 price target on Meta (NASDAQ: META).
“We remain positive on BUY-rated META shares into 1Q earnings supported by core advertising revenue growth acceleration and an investment playbook balanced between sustainable, high-return opportunities and bigger swings showing early evidence of success.
We raise our 1Q26 revenue growth forecast to 32.3% from our prior 30.8% (Visible Alpha consensus 31.2%) reflecting constructive intra quarter advertiser feedback pointing to attractive engagement trends and industry leading advertising performance, largely driven by Andromeda.
We expect top-line strength to persist throughout 2026 (>23% growth each quarter) driven by ongoing performance improvements, sustained strong advertiser demand, and continued impression growth, particularly on video surfaces.
While top-line trend is among the best in our coverage, we believe the primary overhang for investors remains on capex-related returns, with 2026 guidance of $115-$135bn implying a 73% increase vs.
2025 at the mid-point and our/consensus forecasts expecting even further growth in 2027.
Our view is that Meta is investing from a position of strength, with the recent launch of Muse Spark, the company’s first major AI model out of Meta Superintelligence Labs, providing early evidence of capital spend yielding an incrementally competitive product (additional details within).
Similar to our outlook at Alphabet, we expect increased investment to weigh on Free Cash Flow in the near-term, though surpass prior peak levels beginning in 2028.
In this note, we also provide details from Guggenheim’s April 12th Internet Investor Survey (n=98).
Key takeaways include above-consensus revenue outlook in 1Q and 2Q in addition to further capex growth expected in 2027. Maintain BUY rating and $850 price target.”
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