UBS raises Meta's target price to $635, with a buy rating

Golden Ten Data August 2nd News, UBS released a report, maintaining a buy rating on Meta Platforms (META.O) and raising the target price from $630 to $635 to reflect a slight increase in advertising revenue forecasts for 2025 and 2026. The 2025 GAAP diluted earnings per share forecast was raised by 2%, while the 2026 forecast was lowered by 1%, mainly due to increased capital expenditures next year. The bank pointed out that after the earnings conference call, some of the concerns that have caused uncertainty in Meta’s stock price so far will be eliminated, one of the reasons being that the decline in advertising revenue in the second half of the year is extremely small, coupled with the announcement of capital expenditures, investors have been mentally prepared for the increase in capital expenditures budget. Regarding genAI, although the management ruled out any potential benefits to revenue in the next two years, they outlined potential product ideas such as commercial chatbots, AI Studio, etc.