Meta Flexes Ad Strength, Analyst Cites Travel Trends And Weak US Dollar
Keybanc analyst Justin Patterson has upgraded Meta Platforms (META) to an Overweight rating and raised the price target from $655 to $800, citing strong ad trends and favorable macro conditions. He anticipates better-than-expected performance due to resilient ad spending, improving travel trends, and a weakening U.S. dollar. Patterson projects Q2 revenue of $45.3 billion and Q3 guidance of $46.5 billion, with 2027 revenue forecasted at $244 billion and EPS at $32.01. META stock is currently down 0.22% to $701.46.
Keybanc analyst Justin Patterson reiterated an Overweight rating for Meta Platforms META and raised the price forecast from $655 to $800 on Wednesday, citing strong second-quarter ad trends, stable macro conditions, and momentum in AI.
Patterson increased his 2025 and 2026 revenue and earnings estimates for Meta, anticipating a better-than-expected performance driven by resilient ad spending, improving travel trends, and a weakening U.S. dollar.
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He also highlighted strength in tariff-sensitive sectors like autos and retail, and noted that large tech firms are benefiting from a "reverse acqui-hire" trend, boosting talent acquisition.
Patterson's updated target is based on projected Q2 revenue of $45.3 billion and Q3 guidance of $46.5 billion. Despite higher capex and opex from AI investments, he remains bullish, now forecasting 2027 revenue of $244 billion and EPS of $32.01.
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Price Action: META stock is trading lower by 0.22% to $701.46 at last check on Thursday.
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