Wells Fargo Raises Meta Price Target to $767

Wells Fargo analyst Ken Gawrelski raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $767.00 (from $766.00) while maintaining an Overweight rating.

“Project 2Q revenue of $60.7B, +28%, at the high end of the guide w/ advertisers increasingly citing Andromeda’s creative matching model for ROAS improvements.

See ads growth of 27%, ~4pts of FXN decel from a robust 1Q against a 2pt tougher FXN comp.

Pace of growth from a 25%+ share player in digital ad market is extraordinary and is unlikely sustainable, in our view, without expansion to new use cases.

We are 7% above ($7.68 vs. cons $7.20) on EPS but difference (2%) narrows for the full year.

Expect 3Q revenue guidance of $60.5B-$63.5B, +18%-24%, leaving consensus forecast of $63.0B near the high end, implying ~300bps FXN decel at high end, in line with the more difficult comp.

Believe bulls want to see 25% reported growth exiting the year, supporting case for 20%+ growth in ’27 absent new AI-related revenue contributors.

Expect anticipation to build on new products & services launched in association with 2H model release. See stock incorporating limited expectations for success.

Expect FY26 CapEx and OpEx guides maintained and qualitative, but unlikely quantitative, commentary on FY27 investment plans.

We would be surprised by any further updates to FY26 CapEx given the lead times associated with bringing capacity online.

We raise FY27 CapEx to $181B from $170B based on additional power deals signed in the quarter suggesting modestly greater capacity build than prior forecast.

Expect Meta commentary to keep door open to all forms of future capital raises. Expect reaffirmed commitment to aggressive investment in capacity to support proprietary model and product efforts.

Commentary on next model release and continued appetite for robust investment based on optimism for new AI applications and services critical for shares.

As discussed in our recent note, we see opportunity for Meta to lease out a minority of its compute in ’27 while aggressively pursuing its ambitions in the model and application layers.

Estimate every 1GW to contribute $5+ of EPS. Estimates, rating and price target.

Hold FY26 revs / OI ~unch at $254B / $92B (36% margin) while raising FY27 / FY28 revs 0.4% / 0.8% to $303B / $353B and OI 0.7% / 2.4% to $101B / $120B (33.5% / 33.8% margin).

FY26 / FY27 EPS largely unch at $33.75 / $34.10, but raise FY28 1.3% to $39.20.

Cut FY27 / FY28 FCF 49.3% / 17.8% to $9B / $34B on higher CapEx as total capacity builds to 17.7 / 22.7 GW in FY27 / FY28. Maintain OW rating and raise PT to $767 on 22.5x (unch.) our FY27 EPS.”

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