Analyst Ratings January 29, 2026

Truist Boosts Meta Price Target to $900, Citing AI-Led Ad Demand and Faster Near-Term Growth

Broker retains Buy rating after Meta posts stronger-than-expected Q4 results and issues upbeat Q1 guidance

By Priya Menon META
Truist Boosts Meta Price Target to $900, Citing AI-Led Ad Demand and Faster Near-Term Growth
META

Truist Securities has raised its price target on Meta Platforms Inc. to $900 from $875 and kept a Buy rating, pointing to broad-based advertising demand powered by AI improvements and an aggressive near-term growth outlook. The move follows robust fourth-quarter results and first-quarter guidance implying roughly 30% growth at the midpoint, the fastest rate since Q3 2021.

Key Points

  • Truist raised its price target on Meta to $900 from $875 and kept a Buy rating.
  • The increase follows stronger Q4 results and Q1 guidance implying roughly 30% growth at the midpoint, the fastest since Q3 2021; analyst consensus is a 1.33 Strong Buy.
  • Truist cited broad-based advertising demand driven by AI improvements, and noted strong margins (82.01%) and 21.27% revenue growth; management has raised FY2026 capex and operating expense guidance above sell-side estimates.

Truist Securities increased its price target on Meta Platforms Inc. to $900.00 from $875.00 on Thursday while maintaining a Buy rating on the shares. Meta, which carries a market capitalization of $1.69 trillion, was trading at about $668.73 at the time of the update.

The firm said the target bump follows Meta’s stronger fourth-quarter performance and a first-quarter outlook that implies approximately 30% growth at the midpoint. If realized, that pace would mark the company’s fastest growth since the third quarter of 2021.

Wall Street’s positioning appears broadly favorable to the company. The analyst consensus recommendation sits at 1.33 - classified as Strong Buy - and the most bullish price target among analysts reaches $1,117.

Truist highlighted that advertising demand is robust across geographies, industry verticals and customer sizes, creating what the firm described as a constructive setup heading into fiscal year 2026. The research note attributed much of that demand to artificial intelligence-driven improvements in advertisement recommendations, monetization and user engagement.

Those dynamics have coincided with strong margin and revenue performance for the company. The firm noted Meta’s gross profit margin at 82.01% and year-over-year revenue growth of 21.27%.

Truist’s research also drew attention to management’s plans for fiscal 2026, stating that the company is significantly increasing both capital expenditure and operating expense guidance. Those higher investment levels exceed sell-side estimates but more closely align with buy-side expectations, according to the note. Truist summed up its view by saying that Meta "continues to earn the right to invest" so long as it delivers faster near-term top-line growth and higher long-term free cash flows.

In separate financial disclosures, Meta reported fourth-quarter 2025 results that exceeded consensus forecasts. The company announced earnings per share of $8.88, above the projected $8.19, and revenue of $59.9 billion versus the anticipated $58.35 billion.

The company’s earnings call did not include any merger announcements, and Truist noted that analysts are watching closely for future developments. The research firm also observed that there have been no recent upgrades or downgrades from major analyst houses, leaving the consensus picture unchanged for now.

Taken together, these items underscore the trajectory that Truist and other market participants are monitoring: sustained advertising demand supported by AI enhancements, healthy margins and revenue expansion, and elevated near-term investment guidance that will be judged against top-line acceleration and future free cash flow outcomes.


What to watch next

  • Company updates on fiscal 2026 investment execution and any subsequent revisions to guidance.
  • Analyst responses to the elevated capex and operating expense outlook.
  • Any material announcements from management regarding strategy or corporate actions.

Risks

  • Higher fiscal 2026 capital expenditure and operating expense guidance could pressure near-term cash flow if top-line acceleration does not materialize - impacts technology and advertising sectors.
  • Analysts and investors are awaiting further management updates and any material corporate developments; lack of new information could maintain uncertainty in market expectations - impacts investor sentiment across equity markets.
  • No recent upgrades or downgrades from major analyst firms leaves consensus views in place; deviation between buy-side expectations and sell-side estimates could create volatility in the stock's valuation.

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