Evercore Lifts Meta (META) Price Target to $900 on AI-Driven Revenue Inflection
Evercore ISI raised its price target on Meta Platforms to $900 from $875 and reiterated an Outperform rating after a beat-and-raise quarter. The call leans on a 25x multiple of 2027 EPS of $36, implying roughly 25% upside from current levels.
The upgrade hinges on an AI-driven revenue inflection that showed up in Q4 results and carries into Q1 guidance. Management also reinforced its ambition to be an AI leader, and Evercore flagged an implied $50 billion step-up in 2026 revenue versus prior expectations.
Key points
- Rating: Outperform; price target increased to $900 (from $875).
- Valuation: 25x Evercore's 2027 EPS estimate of $36.
- Quarter: Stronger-than-expected Q4 revenue and a better-than-expected Q1 outlook.
- 2026 setup: Implied $50B revenue step-up; management signaling accelerated AI monetization.
- Investment intensity: FY26 capex guide around $55B; total expenditures up roughly 40%.
Why this matters for your model
Evercore's framework puts a concrete multiple on long-term earnings power tied to AI. If you're underwriting the $900 target, the path to $36 in 2027 EPS becomes the central question: ad yield from AI systems, engagement gains, and new monetization surfaces need to continue compounding.
The capex ramp to $55B in 2026 is the other lever. It front-loads spend on compute, infrastructure, and research, which should support AI product improvements and ad performance-while pressuring free cash flow near term. The call implies confidence that incremental returns from AI outweigh the burn.
What to watch next
- Revenue cadence: Does Q1 momentum sustain through the first half, and does management tighten or lift full-year color?
- Capex phasing and efficiency: Updates on training vs. inference spend, utilization, and timing of payback.
- AI monetization signals: Evidence that AI-driven ranking and measurement keep lifting ad ROAS and auction dynamics.
- Expense growth: With total expenditures up ~40% in 2026, watch for operating leverage as revenue steps up.
Risks and offsets
- Execution risk: High capex intensity heightens the bar for returns if adoption or monetization slows.
- Macro and ads cyclicality: Broad demand softness could mask AI-driven gains in yield.
- Regulatory pressure: Policy shifts may affect data usage, targeting, or cost structure.
Bottom line: Evercore's lift to $900 is a bet that AI is already moving the P&L and that 2026-2027 earnings will reflect it. If your thesis hinges on durable AI-driven ad economics, these numbers give you a clear checkpoint for upside and a cost profile to monitor.
For primary materials and updates, see Meta's investor site: Meta Investor Relations.
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