Key insights
- Citizens reiterates an outperform rating on Meta with a $900 price target, citing AI model improvements driving user engagement and ad performance. They believe the market underappreciates the sustainability of Meta's revenue growth. The report highlights Meta's strong gross profit margin and revenue growth. AMD also received a price target increase due to AI demand, with Meta being a key customer. Meta reports earnings in eight days.
Investing.com - Citizens maintained a Market Outperform rating and $900.00 price target on Meta Platforms Inc. (NASDAQ:META) shares. The social media giant, with a market capitalization of $1.7 trillion, currently trades at a P/E ratio of 28.55 and is considered undervalued according to InvestingPro Fair Value analysis.
The firm expects Meta to report earnings ahead of consensus and its own expectations. Citizens tweaked its 2026 revenue and EPS estimates slightly higher.
Citizens believes Meta is implementing more powerful models across its services, leading to more relevant recommendations that are driving more user engagement and more performance for advertisers. The firm views GEM, Andromeda, and ARM as structural improvements enhancing the benefits of AI. This operational excellence is reflected in Meta’s impressive gross profit margin of 82% and revenue growth of 22% over the last twelve months.
Citizens states Meta is in a structural cycle of AI currently and believes the Street is underappreciating the sustainability of revenue growth. The firm acknowledges Meta’s AI investment cycle and remains unclear how Meta will monetize Meta AI directly, though it is already helping advertising indirectly.
Citizens values shares at 20.3x its 2027 GAAP EPS estimate. Meta reports earnings on April 29, just eight days away. For deeper insights, investors can access Meta’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which transforms complex data into actionable intelligence.
In other recent news, Advanced Micro Devices (AMD) has received a price target increase from Stifel, which raised it to $320 from $280, while maintaining a Buy rating. This adjustment is attributed to strategic commitments from companies like Meta and OpenAI, highlighting the growing demand in the AI sector. Meanwhile, Meta Platforms Inc. is set to undergo significant workforce reductions, with plans to lay off approximately 10% of its global workforce, equating to nearly 8,000 employees, starting in May. Further layoffs are anticipated later in the year, though specifics remain undetermined.
In the realm of analyst ratings, TD Cowen has reiterated a Buy rating for Meta, maintaining a price target of $820. The firm anticipates growth in advertising and notes potential margin compression due to AI-related expenditures. Piper Sandler also reaffirmed an Overweight rating on Meta, setting a price target of $880, citing momentum in the company’s advertising growth. This includes an increase in cost-per-thousand impressions, which rose to 14% in March from 11% in February. These developments reflect ongoing shifts and strategic moves within the tech industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.