Scotiabank Raises Meta Price Target to $650

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

(NASDAQ: META) to $650 (from $600) while maintaining a Sector Perform rating.

“Raising PT to $650 based on ~19x 2027E EPS, while maintaining Sector Perform.

While core ad strength continues, we remain skeptical that Muse should be treated as a meaningful revenue platform anytime soon.

There is still no evidence of material Muse revenue, and the path to a profitable product depends on both a substantial reduction in serving costs and creating a new transaction-oriented revenue stream that requires changing consumer and business behavior.

We believe investors will be laser-focused on META’s 10/21 filing despite META’s effort to downplay financing concerns on the callback.

The filing indicates that all three long-term forecasts presented to the Board contemplated raising hundreds of billions of dollars, potentially beginning as early as fall 2026; management also viewed an equity raise as “essential” to anticipated business plans and expects additional near-term capital, including equity.

We believe this makes potential dilution a central part of the FCF debate.

The next re-rating requires evidence that AI gross profit can outrun serving costs, depreciation and a higher share count, not simply that Muse can scale.”

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