Wealth managers bullish on Meta despite price target cuts from Bernstein and Loop Capital.

From Yahoo Finance: 2025-04-30 12:44:00

Wealth management firm Bernstein cut its price target on Meta stock to $700 from $800 but maintained an Outperform rating. Loop Capital also reduced its price target on META to $695 from $900, citing concerns about Chinese marketers affecting revenue and predicted lower Q2 sales.

Despite price target cuts, Bernstein remains bullish on Meta due to healthy ad sales in Q1 and improved return on ad spend. New inventory from Threads and Notifications assets is expected to boost performance. The firm also anticipates cost reductions through AI implementation and enhancements in Business Messaging and wearables.

Loop Capital expressed caution on Meta, highlighting the impact of reduced revenue from Chinese marketers. The investment bank predicts Q2 sales below analysts’ expectations. While acknowledging Meta’s potential, Loop Capital believes AI stocks offer higher returns in a shorter timeframe, suggesting alternative AI stock options for investors.

Read more: Wealth Manager Remains Bullish on META