KeyBank Capital Markets on Wednesday reiterated its Overweight rating on Meta Platforms (NASDAQ:META), while raising the price target and earnings per share (EPS) estimates for 2024 and 2025.
The 12-month price objective was lifted from $475 to $540, implying roughly 8% upside from the last closing price. The firm increased its EPS estimates for 2024 and 2025 by 5% and 6%, respectively, and introduced its 2026 revenue and EPS forecasts.
The moves come as KeyBanc analysts observe a strong uptick in Meta ad prices quarter-to-date.
Through May, pricing on Gupta Media has grown by approximately 8 points year-over-year, which correlates closely with reported results. Further, daily trends through mid-June suggest an even faster acceleration of over 10 points, reinforcing the belief that Meta's return on investment (ROI) remains attractive and that advertisers are benefiting from the company's AI offerings.
“As such, we are incrementally confident Meta is tracking toward the high end of guidance,” analysts said in a note.
KeyBank's updated forecast raises its 2024 and 2025 revenue estimates to $160.9 billion and $181.2 billion, marking an increase of 2% and 3%, respectively. This places KeyBank's projections at approximately 1% above the consensus for each year.
The revised EPS estimates for 2024 and 2025 are now $21.40 and $24.57, which are more than 5% higher than the consensus.
For 2026, the firm anticipates revenue to reach $201.7 billion and EPS to hit $27.60, assuming around 11% year-over-year revenue growth and a flat operating margin.