Meta stock price target raised to $765 from $690 at BofA on smart glasses push

Investing.com - BofA Securities raised its price target on Meta Platforms Inc. (NASDAQ:META) to $765.00 from $690.00 while maintaining a Buy rating on the stock. Meta, currently trading at $733.10 and commanding a market capitalization of $1.85 trillion, continues to demonstrate strong momentum with its shares trading near their 52-week high of $747.90.

The price target increase follows Meta’s $3.5 billion investment to acquire approximately 3% stake in EssilorLuxottica, the parent company of Ray-Ban and Oakley. This investment signals a deeper and longer-term partnership focused on developing smart glasses technology. InvestingPro data shows Meta’s strong financial position, with impressive gross profit margins of 81.77% and robust revenue growth of 19.37% over the last twelve months.

Meta and EssilorLuxottica first partnered in 2019 to develop Ray-Ban Meta smart glasses, which enable users to take photos, livestream to social media, listen to audio content, make calls, send texts, and perform real-time language translation. In June, Meta expanded the partnership by launching performance-focused AI smart glasses under the Oakley brand, specifically targeting athletes.

According to press reports cited by BofA, Meta sold approximately 1 million smart glasses in 2024 and is targeting between 2 million and 5 million unit sales in 2025, indicating growing momentum in this product category.

Reports suggest Meta may have the option to increase its stake in EssilorLuxottica to 5% in the future, potentially deepening the strategic partnership between the two companies. With analyst consensus remaining strongly bullish and targets reaching as high as $935, investors can access detailed valuation analysis and 12 additional ProTips through InvestingPro’s comprehensive research reports.

In other recent news, Meta Platforms has been the focus of several key developments. Baird raised its price target for Meta to $740, citing advancements in AI-powered products and integration with the Advantage+ advertising platform. This move is expected to significantly boost Meta’s messaging revenue, with potential contributions of up to $50 billion by 2030. Meanwhile, Cantor Fitzgerald maintained an Overweight rating on Meta, despite potential EU fines related to its ad model compliance with the Digital Markets Act. The European Commission’s ongoing evaluation could lead to daily fines if Meta’s model is found non-compliant. Citizens JMP also reiterated a Market Outperform rating for Meta, emphasizing Instagram’s strong user base among young adults. Additionally, Meta introduced direct messaging features on its Threads platform, aiming to enhance user interaction and community building. These updates are part of Meta’s strategy to position Threads as a major social app.

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