Evercore ISI has reaffirmed an Outperform rating on Meta Platforms Inc. and maintained a $875.00 price target as the company approaches its fourth-quarter earnings report, scheduled for January 28. With Meta shares trading at $658.76, Evercore’s target implies roughly a 33% upside from current levels. The broader analyst community continues to lean bullish, with the Street consensus at 1.36 on the rating scale, denoting a Strong Buy.
What Evercore expects for Q4
Evercore describes its Q4 outlook for Meta as a "Modest Beat & Bracket Q4," while also flagging potential downside risk to some Street assumptions for 2026 total spending and capital expenditures. The research team regards the consensus Q4 revenue estimate of $58.3 billion - a year-over-year increase of 21% - as "highly reasonable." On profitability, Evercore sees the Street estimate for Q4 operating profit of $23.8 billion (a 40.8% margin, down roughly 750 basis points from the prior year) as similarly reasonable, based on management's recent guidance track record.
Advertising demand and product momentum
Advertising checks underpin much of Evercore's view. One large agency cited by Evercore forecasted a 29% year-over-year increase in Meta ad spend for Q4. Separately, another agency reported that total digital advertising in the quarter exceeded expectations, growing 8.1% compared with a forecast of 7.2%.
Evercore also notes that Meta's investments in artificial intelligence are translating into measurable performance gains for advertisers. One buyer reported a 4% return on investment lift on the platform in 2025. Product-level dynamics, including continued momentum in Reels, improved traction with Instagram Shops, and additional inventory generated by partnership ads, are highlighted as supporting the advertising outlook.
Valuation, financial health and market context
According to InvestingPro data cited in Evercore's coverage, Meta is trading near its Fair Value estimate, with analyst price targets spanning from $685 to $1,117. InvestingPro assesses Meta’s overall financial health as "GREAT," assigning a score of 3.21. The company is trading at a price-to-earnings ratio of 29.29, and analysts project earnings per share of $29.48 for fiscal year 2025. Meta’s market capitalization is noted at $1.66 trillion within the Interactive Media & Services industry.
Other recent analyst actions
Several other brokerages have also published their views ahead of the print. BofA Securities remains constructive with a Buy rating and a $810 price target; its fourth-quarter revenue forecast is $59.2 billion with earnings per share of $8.27, above consensus. Wells Fargo adjusted its price target to $754 from $795 while keeping an Overweight rating. Stifel reduced its target to $785 from $875, citing concerns related to AI investments despite noting strong ad performance from Instagram Reels in checks.
Regulatory and legal developments
Meta is operating amid active regulatory scrutiny. In Brazil, a court has suspended an antitrust measure that had been imposed by the national antitrust authority CADE; the suspension permits Meta to restrict third-party AI tools on WhatsApp Business for the time being. In the United Kingdom, the communications regulator Ofcom has opened an investigation into whether Meta provided incomplete or inaccurate information about WhatsApp during a market review. These matters underscore ongoing legal and regulatory dynamics surrounding the company.
Takeaway
Evercore’s reiteration of an Outperform rating and an $875 target rests on positive advertising demand checks, early evidence of AI-driven ad performance gains, and continued product momentum from Reels and Instagram Shops. The firm expects a modest upside for Q4 results but cautions that longer-term spending and capital expenditure assumptions used by the Street could be vulnerable. Market participants and other sell-side firms offer a range of views, reflected in differing price targets and ratings ahead of the earnings release.