KeyBanc raises Meta stock price target to $900 on AI momentum

KeyBanc has increased its price target for Meta Platforms Inc. (NASDAQ:META) stock to $900, up from the previous $780 target, while maintaining an Overweight rating on the company. The investment firm believes Meta's momentum in the AI sector is increasing and that the social media giant has multiple avenues to boost revenue growth. The current stock price for META is $736.60, with a market capitalization of $1.88 trillion and a price-to-earnings ratio of 27.83.

Investors should keep an eye on Meta Connect, which takes place from September 23-24, to gain insight into how Meta is developing relationships with developers and creating monetization opportunities. The company's revenue forecast for 2027 has been raised to $313.8 billion, representing a 23% increase year-over-year, and for 2028, the forecast is $378.7 billion, reflecting a 21% growth.

KeyBanc's projections for Meta's revenue in 2027 and 2028 both exceed the current consensus by 3% and 4%, respectively. The investment firm now anticipates a 2028 earnings per share of $40.50, which is 1% above Street estimates, and a price target of $900, based on a 22.2 times estimated 2028 price-to-earnings ratio.

Meta's recent developments, including the launch of Petal, a subsea cable system designed for petabit capacity across transoceanic distances, have contributed to a favorable sentiment toward the company's AI returns. Other recent updates from Meta include the successful launch of Muse, its assistant product, which has garnered strong early adoption.

Meta CEO Mark Zuckerberg is set to attend a White House state dinner for Chinese President Xi Jinping, an event attended by other tech leaders, including those from Nvidia, Qualcomm, Microsoft, and OpenAI.