Barclays Raises Meta Price Target to $880

Barclays analyst Ross Sandler raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $880 (from $780) while maintaining an Overweight rating.

“Revenue and OI exceeded consensus excluding the litigation settlement, and the tone around 4Q and “strong” revenue growth expected in ’27 was upbeat.

Muse’s initial 10m+ sign ups to date coupled with the high shopping intent set the stage for a historic run at META as the product scales up globally.

However, the new class of shares likely signals potential future equity raises, but not until the class becomes effective in 1Q27 or beyond.

Stepping back, we continue to view META as one of the best names across our coverage and would add to positions.

Muse is off to a strong start, reaching 10m+ sign-ups in just six weeks with ~25% using the product on a given day. The core ad revenue cadence was solid in 3Q with revenue +26% y/y ex-FX (vs.

Street’s Q3 24% est).

Looking to 2027, management expects strong overall revenue growth, with continued runway for AI to improve the core ads recommendations/conversions, and emerging AI revenue streams beginning to contribute across subscriptions, APIs, and enterprise offerings.

There may be a point where the premium growth rate META is realizing relative to the digital ad industry abates, but not in ’27 based on the outlook.

There were few negatives to point to in 3Q.

The new non-voting share class doesn’t remove the potential equity-raise overhang (it may have increased it in fact) to help META continue to invest aggressively in AI infrastructure.

Muse is more expensive to operate relative to FoA mobile apps for obvious reasons, but management sounded confident around driving 10x cost-efficiency improvement in ’27.

Ongoing legal/regulatory costs create temporary headline risk.”

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