Wells Fargo Reiterates Overweight on Meta, $995 Price Target

Wells Fargo analyst Ken Gawrelski reiterated an Overweight rating and $995 price target on Meta Platforms Inc.

(NASDAQ: META).

“META announced $95B equity financing plan, including $35B of underwritten offerings and a $60B ATM program of Class C, to support AI infrastructure and personal superintelligence initiatives.

Overallotment could raise an addl. $5B, bringing total proceeds to ~$100B.

Nvidia, AMD and Broadcom have indicated an interest to purchase up to $5B of the offering as “Cornerstone” investors. $60B ATM not expected to commence until 1Q:27 following establishment of Class C stock.

Equity raise likely fulfills our expectation of a financing gap of $60-$80B for FY27. See the size and structure of common, preferred, and ATM of Class C as sufficient to fulfill funding needs in ’27.

We expect AI investment cycle to persist well beyond ’27, such that future offerings (equity / debt) still possible, but likely come with greater visibility on Muse adoption/monetization and AI demand.

In our view, this removes the financing dependence upon an increasingly volatile credit market.

META raising up to $95B exceeds market expectations ($40-50B) but sophisticated structure likely removes concern of another large offering in 1Q:27 upon establishment of Class C (non-voting) stock.

Expect some time for stock to absorb supply expansion, but greater share of offering in form of ATM of Class C allows META to match timing of sales with CapEx outflows and as equity market conditions allow.

“Cornerstone” helpful endorsement, but we expect plenty of market demand for shares. FY27 OpEx and CapEx guidance, now expected on 4Q call, remains a modest overhang to shares.

Absence of ’27 OpEx & CapEx commentary on the 3Q call created an overhang, and market would have preferred commentary on ’27 today.

Reiterate our view for ’27 OpEx of ($210B) – ($215B), and CapEx of (~$250B), both above rising Street ests but in line with buyside cons.

The risk is that the larger equity offering, in combination with Sch. 14C filing comments, could be indicative of higher CapEx for longer.”

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