Wall Street analysts are standing firm on their bullish outlook for Meta stock just days before the company reports fourth-quarter earnings on January 28. The social media giant faces high expectations as multiple investment firms maintain price targets well above its current trading level of $658.76.
BofA Securities kept its Buy rating with an $810 price target. The firm forecasts Q4 revenue of $59.2 billion with earnings per share reaching $8.27. These numbers beat consensus estimates of $58.3 billion and $8.20 respectively.
Evercore ISI holds an even more optimistic view with an $875 price target and Outperform rating. The research firm expects Meta to deliver what it calls a “Modest Beat & Bracket Q4.” Current analyst consensus shows a Strong Buy rating across Wall Street.
The bullish sentiment stems from several factors. Healthy macroeconomic conditions are supporting advertising spending. AI targeting capabilities continue improving platform performance. Usage growth across Meta’s apps remains strong.
Advertising checks paint an encouraging picture. One large agency told Evercore that Meta spending grew 29% year-over-year in Q4. Another agency reported overall digital ad spending in Q4 hit 8.1% growth versus 7.2% expected.
Meta’s AI investments are paying dividends. One buyer noted a 4% return on investment lift on the platform in 2025. Product momentum in Reels continues driving engagement. Instagram Shops are gaining traction. Partnership ads offer new inventory sources.
BofA projects first-quarter 2026 revenue of $52.3 billion with EPS of $6.31. Street expectations sit at $51.2 billion and $6.29. The firm anticipates Meta will guide Q1 revenue between $50.0-$52.5 billion, representing 18-24% year-over-year growth.
The big question mark surrounds expense guidance for 2026. BofA forecasts expenses ranging from $153-$160 billion, up 30-36% from the previous year. Consensus estimates sit at $150 billion. Capital expenditure guidance is expected between $109-$114 billion versus Street expectations of $110 billion.
Investor concerns about 2026 expenses have been building for five months. BofA suggests expense growth guidance around 30% could be viewed positively. Guidance at or above 35% might get a negative market reaction.
Evercore notes potential risk to Wall Street’s 2026 total expenditure and capital expenditure assumptions. The firm considers the Street’s Q4 operating profit estimate of $23.8 billion reasonable based on management’s guidance track record.
Not all analysts share the same enthusiasm. Wells Fargo lowered its price target to $754 from $795 while maintaining an Overweight rating. Stifel reduced its target to $785 from $875, citing concerns over AI investments despite noting strong Instagram Reels performance.
HSBC takes the most bullish stance with a $905 price target. The firm credits Meta’s early AI involvement and substantial technology investments as beneficial to its advertising business.
Meta’s gross profit margin stands at 82% with revenue growth of 21.3% over the last twelve months. The company trades at a P/E ratio of 29.29 with analysts forecasting EPS of $29.48 for fiscal year 2025.
The post Meta Stock: Analysts Maintain Bullish Targets Before Earnings Wednesday appeared first on CoinCentral.
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