BofA Securities Lowers Meta Price Target to $810
BofA Securities analyst Justin Post lowered the price target on Meta Platforms Inc.
(NASDAQ: META) to $810 (from $835) while maintaining a Buy rating.
“We are marginally raising revenues estimates, increasing expenses for 1x charges & higher SBC, and lowering Other income for higher interest costs.
For 2027E, we raise revenue by 0.3% to $317bn and lower EPS by 1% to $34.73 reflecting lower other income (interest costs) and a higher tax rate.
We lower our PO to $810 (from $825) based on lower 2027E EPS and an unchanged 24x multiple.
We don’t think AH stock pressure was due to weaking fundamentals (IG time spent up 10%, high end of 3Q outlook suggests accelerating 2-yr rev. growth), rather concerns on Meta’s investment direction (higher SBC didn’t help).
Recent capacity deals suggest AI capacity is very valuable, Meta should have significant capacity optionality as its data centers ramp over the next 12 months, and we think current valuation reflects little to negative value for Meta’s growing capacity assets.
At AH price $542, Meta is valued at 16x our ’27E EPS (and just 13x for Family of Apps), and we see favorable risk/reward with potential for upcoming product launches and capacity deals to raise 2027 rev,/EPS expectations.
Buy. NT risk is negative news flow on upcoming social media trials.”
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