UBS Lowers Meta Price Target to $865

UBS analyst Stephen Ju lowered the price target on Meta (NASDAQ: META) to $865.00 (from $908.00) while maintaining a Buy rating.

“Rather than interpreting the in-line 2Q26 revenue guidance as a signal that near-term GenAI benefits to core ad revenue is already priced in, we think there is still a case to make for upside surprise as: 1) impressions growth (+19% and up 1 ppt QOQ) has now resumed taking a larger role in driving revenue, and 2) Meta expects to deliver ongoing recommendation and ad engine improvements near term.

While the shares of its megacap peers have benefitted from recent deals and product announcements, Meta remains unique in that only the OpEx and CapEx has been placed in models, while the full extent of the revenue benefits remain to be determined.

We hence believe the optionality or positive change and hence a benefit to the multiple – which currently stands at 19x 2027 GAAP EPS – are ahead of us.

Our OpEx and CapEx estimates do move higher, resulting in a 5% and 7% drop to our 2027E and 2028E EPS, respectively.

Our revised price target of $865 implies ~40% upside (vs aftermarket price) and we remain Buy rated.”

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