Meta Platforms Started With Buy Rating at Evercore ISI

DA Davidson analysts initiated coverage on Meta Platforms Inc. (NASDAQ:META) with a Buy rating and set a price target of $600 on the stock. The analysts highlighted Meta as a top pick within the mega-cap space, citing its emerging leadership in key future technology platforms and its attractive relative valuation.

DA Davidson’s price target implies a valuation of 24x 2025 earnings per share (EPS), a premium over Google, reflecting Meta’s stronger positioning. Despite Meta trading at 21x earnings, making it one of the least expensive mega-cap stocks, the analysts note that excluding the Reality Labs segment—where Meta has seen substantial losses—could lower the multiple to just 16x, offering downside protection.

The analysts acknowledge that while Meta faces short-term challenges, including tougher year-over-year comparisons, its reliance on certain advertising sectors, and the upcoming election cycle, the company's positioning for future growth in large technology platforms remains a significant long-term opportunity.