Meta Platforms (META) received a new Street-high price target of $1,117 (67% upside potential) from Rosenblatt analyst Barton Crockett, following the release of Q3 earnings. The analyst also maintained his Buy rating, citing Meta’s strong third-quarter performance and long-term upside from its aggressive AI investments.
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Crockett called Meta’s Q3 “great,” highlighting 26% revenue growth year-over-year and a 21% jump in adjusted EBITDA to $31 billion with a robust 60.6% margin. Further, adjusted EPS rose 20% to $7.25. Meta’s Q4 guidance also impressed, with the high end pointing to 22% year-over-year growth.
Analyst Says Meta’s AI Spending Justified
While investors are concerned over rising costs as Meta now expects $70–$72 billion in capex for 2025 and $116–$118 billion in total expenses, the analyst sees the spending as justified.
He noted that Meta plans “notably larger” capex growth in 2026 and “significantly faster” expense increases, but the return on investment from AI initiatives appears strong enough to support the spending.
“We net it out and still end up raising EBITDA and Adj. EPS estimates for Q425 and 2026,” Crockett said. He added that the new price target reflects a 20x multiple on 2026 estimated adjusted EBITDA, backed by a 20% compound annual growth rate from 2025 to 2027.
Is Meta Stock a Good Buy?
Currently, Wall Street has a Strong Buy consensus rating on META stock based on 39 Buys and eight Holds. The average Meta Platforms stock price target of $857.91 indicates a 29.21% upside potential from current levels.
