Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) has seen its price target boosted by Oppenheimer analysts, who have improved their outlook for the tech giant based on stronger-than-expected advertising market trends.
They upped their price target to $775 from $665, implying upside from Meta’s share price of about $702 on Monday morning.
“With the macro and advertising environment better than feared versus six weeks ago, we are increasing our estimates and price target,” the analysts wrote.
With a tariff-induced recession “seemingly off the table,” the analysts upped their second quarter, third quarter, and fourth quarter revenue estimates by 4%, 9% and 3%, respectively.
Earnings per share (EPS) for each of those quarters are expected to be up 8%, 15%, and 5%.
Oppenheimer now expects Meta to grow revenue by 17% in 2025 and 15% in 2026, adjusting its forecasts upward by 4% and 1%, respectively.
These projections imply continued market share gains in the digital ad space, but at a slightly slower pace than the past two years.
The analysts also highlighted Meta’s improving profitability, projecting 2025 earnings per share of $25.41 and 2026 EPS of $28.23, marking year-over-year growth of 6% and 11%, respectively.
The longer-term risk for Meta is falling behind on AI model development, with Llama 4 perceived as a disappointment and the company’s subsequent $14.3 billion investment to acqui-hire Scale AI. Oppenheimer also noted the formation of a new superintelligence team under CEO Mark Zuckerberg.
As such, the analysts project 2025 and 2026 capital expenditures (capex) of $68 billion and $85 billion, respectively.
“There is reasonable evidence that Meta is struggling to further innovate AI,” they wrote. “All together, Meta is likely to see higher opex/capex to increase LLM capabilities.”