Wall Street Analyst Updates Meta Stock Price Outlook: Truist Keeps ‘Buy’ and Sees $875 Target

Meta Platforms (NASDAQ: META) is back in the spotlight after a major Wall Street analyst reaffirmed a bullish stance and updated the Meta stock price outlook with a fresh reminder: even after a period of choppy performance, some pros still believe the stock has meaningful room to run.

According to Finbold’s report published on January 17, 2026, Truist Securities analyst Youssef Squali maintained a ‘Buy’ rating on Meta and set a price target of $875. With Meta’s last referenced closing price near $620, that target implies a potential upside of roughly 40%—a bold statement, but one that’s rooted in how Truist views Meta’s valuation versus its Big Tech peers and the company’s long-term AI and monetization trajectory.

What Changed: The New Truist Price Target and the Big Picture

The key update is simple but important: Truist did not blink. Squali’s note, as summarized by Finbold, signals confidence in Meta’s medium- to long-term growth even though the stock has underperformed recently. The new target—$875—frames Meta as a large-cap name that may be temporarily misunderstood by the market, especially in how investors are pricing Meta’s AI investment cycle.

In plain English: Truist appears to believe the market is focusing too heavily on what Meta is spending (capital and operating expenses tied to AI) and not enough on what Meta could earn if those investments translate into stronger products, better ad performance, and improved monetization across the company’s massive family of apps.

Why Truist Thinks Meta Is Undervalued: The “AI Gap” Argument

One of the most interesting parts of Truist’s case is the valuation logic. Squali argued that Meta’s current valuation doesn’t fully reflect its ability to narrow the gap with peers in artificial intelligence.

That “gap” idea matters because investors often reward companies they believe are leading the next platform shift. Right now, AI is that shift. And within Big Tech, sentiment can swing fast: one quarter you’re viewed as a leader, the next you’re viewed as behind—sometimes based more on narratives than on real product progress.

Finbold noted that Meta has lagged other hyperscalers since its third-quarter earnings report, as investors focused on the company’s elevated spending tied to AI and also questioned Meta’s competitive positioning. In other words, the market has been nervous: “Are they spending too much?” and “Are they building the right AI products?”

Truist’s counterpoint is essentially: a lot of that caution is already priced in.

META Stock Valuation: The P/E Multiple Comparison That Fuels the Bull Case

Here’s where the valuation debate becomes concrete. Truist highlighted that Meta trades at roughly 20x earnings, which is notably lower than the 30x-plus multiples the market assigns to peers such as Alphabet and Amazon.

That gap can mean different things depending on your perspective:

• The bear view: Meta deserves a discount because it’s more ad-dependent, faces heavier regulatory scrutiny, and is spending aggressively on AI and long-horizon projects.
• The bull view (Truist-leaning): the discount is too big given Meta’s scale, engagement engine, ad optimization improvements, and its potential to turn AI investment into measurable revenue and profit growth.

When a mega-cap trades at a lower multiple than peers, investors naturally ask: is it a bargain, or a value trap? Truist is clearly leaning toward “bargain,” and the $875 target is the numeric version of that conviction.

What Wall Street Expects Next: Earnings, Engagement, and Monetization

Truist’s optimism isn’t based only on valuation math. Finbold reports that Squali expects Meta’s upcoming earnings to land near the top end of market expectations, supported by:

• Strong user engagement
• Improved content ranking
• Better monetization

In Truist’s view, these factors could help offset near-term spending pressures and keep Meta’s revenue growth durable.

Q4 2025 Earnings Expectations (The Numbers Investors Will Watch)

For the fourth quarter of 2025, Wall Street expects Meta to report earnings of $8.29 per share, up 3.4% from $8.02 a year earlier, according to the Finbold summary.

Even though that year-over-year growth rate might not look massive at first glance, the bigger story is what investors will listen for next: forward guidance on revenue trends and spending—especially as AI capex remains a headline topic.

The Key Date: Meta’s January 28 Earnings Release

Finbold points to January 28 as the next major catalyst, when Meta is scheduled to report earnings and provide commentary on revenue and spending guidance—expected to broadly align with consensus forecasts.

If you’re tracking META closely, this is the kind of event that can quickly reshape the short-term narrative. A single earnings call can either calm investor fears (“spending is disciplined, returns are clear”) or amplify them (“we’re investing heavily and results take time”).

Why AI Spending Makes Investors Nervous—and Why Bulls Still See Opportunity

Meta’s AI push is a double-edged sword for sentiment. On one side, AI is the future of ad targeting, creative automation, user experience, and business messaging—areas where Meta already has giant scale. On the other side, AI is expensive, and the market hates uncertainty about payback timelines.

Finbold’s recap notes that investors have focused on elevated capital and operating expenditures tied to Meta’s AI investments. This “show me the ROI” mindset is especially intense when a company is already huge, because growth is harder and expectations are higher.

Truist’s stance suggests it believes Meta’s engagement engine and improving monetization can keep the core business strong while AI capabilities mature—potentially setting up the stock for a longer-term “re-rating” (a higher valuation multiple) if the market becomes more confident in Meta’s AI competitiveness.

Wall Street Consensus: It’s Not Just Truist—Analysts Stay Largely Positive

Truist may have sparked the headline, but the broader Street picture is also upbeat. Finbold reports that, based on 44 analysts tracked by TipRanks, Meta holds a “Strong Buy” consensus, driven by:

• 37 buy recommendations
• 6 holds
• 1 sell

That distribution is a strong signal that institutional sentiment remains supportive even if the stock has recently underperformed.

Average Target, Upside Potential, and the Forecast Range

Finbold also highlights the consensus numbers:

• Average 12-month price target: $823.63
• Implied upside from ~$620: nearly 33%
• Most bullish target: $1,117
• Lowest target: $655.15

This wide range shows that while many analysts are bullish, there’s still disagreement about how quickly Meta’s AI investments translate into bottom-line results—and what valuation multiple the company deserves as that story plays out.

How to Read These Price Targets Without Getting Tricked by the Hype

Price targets can be useful, but they’re not magic. Here’s a practical way to interpret them:

• Targets reflect a model, not certainty. Analysts typically use valuation methods like earnings multiples, discounted cash flow frameworks, and peer comparisons. Small changes in assumptions can swing the result.
• Targets change as narratives change. If AI progress looks faster, multiples can expand. If spending looks uncontrolled or regulation bites harder, multiples can compress.
• Consensus can be wrong—both ways. A Strong Buy consensus doesn’t guarantee gains, but it does suggest that many professionals see more upside than downside from today’s levels.

The healthy approach is to treat these targets like a “market temperature check” rather than a promise. Still, the Truist $875 target and the $823.63 average do tell you something important: many analysts believe Meta is priced below its longer-term potential.

Key Catalysts That Could Move META Next

If you’re looking at what might push Meta higher (or lower), these are the big catalysts implied by the Finbold summary and the broader market context:

1) Earnings and Guidance (January 28)

The upcoming earnings release is the most immediate catalyst. Investors will watch revenue momentum, ad demand signals, and—most importantly—spending guidance.

2) Engagement and Content Ranking Improvements

Truist calls out improved content ranking and strong engagement. That matters because more engagement typically supports more ad inventory and better ad performance.

3) AI Capability Catch-Up and “Re-Rating” Potential

If Meta demonstrates clear AI competitiveness—either via product quality, advertiser results, or efficiency gains—the market may be willing to pay a higher multiple than ~20x earnings. Truist explicitly suggests this is part of the opportunity.

4) Monetization Improvements Across the Ecosystem

Better monetization can come from improved ad tools, better measurement, business messaging, and stronger performance from Meta’s recommendation systems. Truist expects monetization improvements to help offset spending pressures.

Risks to Watch: What Could Break the Bull Thesis

No stock is a one-way street—especially a mega-cap in the regulatory spotlight. Here are the risks that could challenge Truist’s bullish call:

• AI spending without clear payoff: If costs climb faster than revenue benefits, investors may push the multiple lower.
• Competitive pressure: Social platforms compete aggressively for attention. A shift in user behavior can hit engagement and ad pricing.
• Regulatory and legal overhang: Big platforms face ongoing scrutiny, and unexpected actions can affect business practices or profitability.
• Ad cycle volatility: Advertising budgets can tighten quickly if macro conditions weaken.

Truist’s view implies these risks are already “in the price” to a meaningful degree—hence the argument that the stock’s current valuation doesn’t fully reflect upside potential.

FAQs About the Meta Stock Price Update

1) What is the updated Truist price target for Meta?

Truist Securities analyst Youssef Squali set a Meta price target of $875 while maintaining a ‘Buy’ rating.

2) How much upside does Truist see from Meta’s recent price?

Finbold reports the target implies about 40% upside from the last referenced closing price of around $620.

3) Why does Truist believe Meta is undervalued?

Truist argues Meta’s valuation doesn’t fully reflect its ability to narrow the AI gap with peers and suggests much of the market’s caution about spending is already priced in.

4) How does Meta’s valuation compare to Alphabet and Amazon?

Truist notes Meta trades at roughly 20x earnings, below the 30x-plus multiples assigned to peers like Alphabet and Amazon.

5) When is Meta’s next earnings release?

Attention is turning to Meta’s January 28 earnings release, where guidance is expected to broadly align with consensus forecasts.

6) What does Wall Street consensus say about Meta?

Based on 44 analysts tracked by TipRanks, Meta has a Strong Buy consensus rating with 37 buys, 6 holds, and 1 sell.

7) What is the average 12-month Meta price target?

The average 12-month price target is $823.63, implying nearly 33% upside from roughly $620, according to the Finbold summary citing TipRanks data.

8) Where can I see the analyst consensus source referenced in the report?

The report references analyst consensus data tracked by TipRanks.

Conclusion: A Bullish Target, a Discount Multiple, and a Big Test Ahead

Meta’s latest analyst update is a classic Wall Street storyline: a mega-cap stock trades at a noticeable valuation discount, investors worry about heavy AI spending, and a top analyst says, “Hold on—this is exactly why it’s attractive.”

Truist’s $875 target and continuing Buy rating suggest confidence that Meta can sustain strong engagement, improve monetization, and prove its AI strategy deserves a higher multiple over time. Meanwhile, the broader analyst community remains supportive, with a Strong Buy consensus and a wide target range that reflects both opportunity and uncertainty.

The next major checkpoint is close: January 28. Depending on what Meta reports—and how it frames spending and AI progress—the market’s current narrative could either firm up or flip fast.

Disclosure: This rewritten article is for informational purposes only and is not financial advice.

#SlimScan #GrowthStocks #CANSLIM