Scotiabank Lowers Meta Price Target to $600

Scotiabank analyst Nat Schindler lowered the price target on Meta Platforms Inc.

(NASDAQ: META) to $600 (from $700) while maintaining a Sector Perform rating.

“Reducing PT to $600 from $700 based on ~18x 2027E P/E vs. prior ~21.5x, while maintaining Sector Perform rating.

This quarter strengthened the long-term investment case by providing the clearest evidence yet that AI can become a meaningful revenue platform, but failed to satisfy elevated buy-side expectations, driving the stock lower after-hours.

Investors appear focused on results & guidance vs. whispers, but the more important development may be that META provided its clearest roadmap yet for monetizing AI beyond ads.

That should increase confidence in the long-term ROI of the company’s AI investments, even if it does little to change near-term FCF expectations.

Meanwhile, capex, expenses, depreciation, and tax assumptions continue to move upward, limiting estimate upside.

The key valuation debate therefore remains whether AI revenue can scale quickly enough to offset sustained AI investment.

The stock debate became more difficult because monetization remains largely prospective while spending is immediate.

Until investors see measurable AI revenue against rapidly rising AI spending, we believe investor focus will remain on FCF durability and AI monetization timing rather than the size of the AI opportunity.”

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