KeyBanc Lifts Meta (META) to $800, Sees AI Fueling Future Upside

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks on Wall Street’s Radar. On July 17, KeyBanc analyst Justin Patterson raised the firm’s price target on the stock to $800 from $655 and kept an “Overweight” rating on the shares.

Owing to strong revenue momentum, Keybanc has raised its 2025 and 2026 revenue and EPS. However, it is also aware that there may be increased spending on artificial intelligence in terms of both capital expenses and operating costs. The firm doesn’t think this is going to be a problem as long as Meta can explain how its AI investments are paying off.

“We expect 2Q revenue comes in at $45.3B, and expect 3Q revenue guidance for $45B-$47.5B (we are modeling $46.5B). While we have raised our 2025E and 2026E revenue and EPS to reflect revenue momentum, we are mindful that there are upward biases to capex and opex from AI investments and are thus slightly below consensus.”

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

“We do not necessarily view this as an issue for the stock, provided management articulates where it is seeing AI returns. Finally, we introduced 2027E revenue and EPS of $244.0B and $32.01, respectively, and raised our PT to $800 (25x 2027E P/E) as we roll forward to 2027E valuations.”

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