BMO Capital has increased its 12-month price target for Meta Platforms Inc. to $730.00 from $710.00 and maintained a Market Perform rating on the stock. The firm pointed to Meta's recent operating performance and early signs of benefit from its AI investments as reasons to raise the target, while leaving its recommendation unchanged.
Meta is trading at about $668 per share and carries a market capitalization of $1.69 trillion. The company is trading at a price-to-earnings ratio of 29.65, reflecting investor expectations for future earnings growth relative to current share price.
BMO highlighted Meta's fourth-quarter 2025 results as a driver of the revised target. For the quarter, revenue and operating income exceeded consensus estimates by 2.5% and 2.9% respectively, according to the research note. These outcomes coincide with a reported gross profit margin of 82.01% and year-over-year revenue growth of 21.27% over the last twelve months.
Looking ahead, Meta has guided first-quarter 2026 revenue at approximately 7% above consensus at the midpoint. The company said a roughly 400 basis point foreign exchange benefit is included in that view. At the same time, Meta's guidance for 2026 includes operating expense and capital expenditure levels that are meaningfully above expectations, reflecting increased investment plans.
BMO's note emphasized the scale of Meta's AI spending, which the firm projects to reach $132 billion in capital expenditures for 2026. The research team said these investments are beginning to produce tangible improvements in the company's recommendation models. Improved recommendations are translating into greater user engagement, which BMO said opens additional monetization opportunities for the company.
The boost to BMO's price target comes amid a wave of analyst adjustments following Meta's fourth-quarter report. Several other research firms increased their valuations or reiterated positive views on the stock:
- BofA Securities raised its price target to $885, citing the influence of artificial intelligence on company returns.
- Goldman Sachs increased its target to $835, highlighting momentum in Meta's core advertising business and continued AI investment.
- KeyBanc set a new target of $855, noting a favorable revenue growth outlook despite the higher expense trajectory.
- RBC Capital reiterated an Outperform rating with a $810 price target.
- Loop Capital maintained a Buy rating with a $940 target.
Collectively, these adjustments reflect a set of analyst views that see Meta's advertising and monetization prospects strengthening as AI initiatives lift engagement and ad effectiveness, even as the company plans materially higher operating and capital spending for 2026. The analysts cited above updated their outlooks in response to Meta's reported fourth-quarter revenue that beat estimates and the company's forward guidance indicating continued growth in the near term.
Summary of facts:
- BMO raised its price target to $730 from $710 and left its Market Perform rating in place.
- Meta is trading around $668 with a market cap of $1.69 trillion and a P/E of 29.65.
- Q4 2025 revenue and operating income beat consensus by 2.5% and 2.9% respectively.
- Meta reported an 82.01% gross profit margin and 21.27% revenue growth over the last 12 months.
- Q1 2026 revenue guidance is about 7% above consensus at the midpoint, with a 400 basis point FX benefit.
- Meta signaled materially higher operating expenses and capital expenditures for 2026, with projected capex of $132 billion tied to AI investments.