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Investing.com -- Oppenheimer analysts raised their price target for Outperform-rated Meta Platforms (NASDAQ:META) shares to $775 from $665 in a note Monday, citing a “better than feared” macro and advertising environment. 

“We are increasing our estimates and price target,” the firm wrote, pointing to stronger ad market conditions compared to six weeks ago.

The analysts raised their FY25 and FY26 revenue estimates by 4% and 1%, respectively, expecting Meta to grow revenue by 17% and 15% ex-FX. This translates to market share gains of “102bp/63bps,” based on projected digital advertising industry growth of 10% in 2025 and 12% in 2026.

Oppenheimer warned that TikTok could pose a “near-term risk, assuming no ban,” while over the long term, Meta may face challenges in artificial intelligence if it “falls behind on AI model development.” 

The firm noted that Llama 4 was perceived as a “disappointment” and highlighted Meta’s $14.3 billion acquisition of Scale AI as part of its AI push.

As a result, Oppenheimer now expects Meta to spend heavily on infrastructure, forecasting capital expenditures of $68 billion and $85 billion for 2025 and 2026, respectively. EPS estimates were also raised to $25.41 for 2025 and $28.23 for 2026, reflecting 6% and 11% year-over-year growth.

Oppenheimer’s new $775 price target is based on 27.5 times 2026 EPS, which it said represents “a 3% discount to peers, despite EPS growing 39% slower 2024–2027E.” The firm added that investors remain optimistic about Meta’s ability to “unlock new business with AI.”

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