Street Calls of the Week
Investing.com - Citi has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META) with a price target of $915.00, following the company’s recent Connect event where three new AI smart glasses were launched. The strong buy sentiment aligns with the broader Wall Street consensus, as shown by InvestingPro data, with analyst targets ranging from $658 to $1,086 and 32 analysts recently revising their earnings expectations upward.
The investment bank expressed increased optimism about Meta’s AI glasses and broader AI device strategy, suggesting that adoption could reach a tipping point in 2026, driven by appealing form factors and price points. This optimism is supported by Meta’s robust financial position, with InvestingPro analysis showing an impressive gross profit margin of 82% and an overall financial health rating of "GREAT."
Citi was particularly impressed with the heads-up display and Neural Band integration in the new Meta Ray-Ban Display glasses during hands-on testing at the Connect event, envisioning multiple potential use cases as the technology evolves.
While acknowledging that AI devices and smart glasses remain in early development stages, Citi views the glasses as a natural extension of AI and potentially essential purchases as superintelligence reshapes the internet user experience.
The bank believes Meta’s short, medium, and long-term product roadmap can deliver continued engagement, monetization gains, and margin expansion, with its AI investments described as "highly strategic."
In other recent news, Meta Platforms Inc. has announced a quarterly cash dividend of $0.525 per share for its Class A and Class B common stock. This dividend is set to be paid on September 29, 2025, to shareholders recorded by September 22, 2025. Analysts at Citizens JMP have reiterated a Market Outperform rating and maintained a $900 price target for Meta, highlighting the company’s expansion of its Reels trending ads program, which has shown promising results in increasing unaided awareness. Bank of America Securities also maintained its Buy rating and $900 price target following Meta’s Connect event, where the company introduced new Ray-Ban Display glasses with advanced display technology and gesture navigation. Cantor Fitzgerald continues to support Meta with an Overweight rating and a $920 price target, anticipating further product launches at the upcoming Connect 2025 event. These developments reflect Meta’s ongoing focus on augmented reality and creative content quality, which analysts believe are crucial for the company’s growth.
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