Oppenheimer raised its price target on Meta Platforms (META, Financials) to $775 from $665; citing a better-than-expected ad market and a growing AI investment strategy. The firm kept its Outperform rating.

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Analysts bumped up their 2025 and 2026 revenue estimates by 4% and 1%, respectively; they now expect Meta to grow sales 17% and 15% in those years, excluding currency effects. The company is projected to pick up 102 basis points of ad market share in 2025 and another 63 basis points in 2026outpacing an industry growing at 10% and 12%.

The note acknowledged risks, including competition from TikTok (assuming no U.S. ban); it also flagged AI execution as a longer-term concern, citing Meta’s Llama 4 as underwhelming. Still, analysts pointed to Meta’s $14.3 billion deal for Scale AI and ongoing infrastructure expansion as signs it’s serious about catching up.

Capital spending is set to climb to $68 billion in 2025 and $85 billion in 2026 as Meta builds out its AI stack; EPS forecasts were raised to $25.41 and $28.23 for those years, reflecting 6% and 11% annual growth. The new $775 target implies a 27.5x multiple on 2026 EPSa slight 3% discount to peers despite a slower 20242027 growth profile.

Investors, the analysts said, are increasingly optimistic about Meta’s potential to unlock new business with AI.

This article first appeared on GuruFocus.