Street Calls of the Week
Investing.com - Truist Securities has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META) with a price target of $880.00 following the company’s Connect 2025 event in San Francisco. The stock, currently trading at $775.72 with a market cap of $1.95 trillion, has seen 32 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
The research firm expressed an "incrementally positive" outlook on Meta’s long-term growth prospects after evaluating the company’s latest AI smart glasses and metaverse initiatives presented at the event by CEO Mark Zuckerberg. This optimism aligns with Meta’s impressive financial performance, featuring 19.37% revenue growth and industry-leading gross profit margins of 81.97%.
Meta unveiled new wearable products for both Ray-Ban and Oakley brands, developed in partnership with EssilorLuxottica (OTC:ESLOY), including what Truist called "revolutionary" Meta Ray-Ban Display glasses featuring a high-resolution display and neural network interface.
While Truist noted these product introductions won’t materially impact Meta’s financial performance in the near term due to the company’s "massive ad revenue base," the firm views the AI-powered wearables portfolio as carrying "big potential."
The research firm believes Meta’s advancements in VR technology, neural networks, developer tools, and content hub development will support the company’s metaverse vision "over time."
In other recent news, Meta Platforms has been engaging in discussions with major media companies like Axel Springer, Fox Corp, and News Corp to potentially license news content for its artificial intelligence products. This development comes as Meta continues to expand its AI strategy, highlighted by the recent launch of new AI smart glasses at the Meta Connect event. Citi has reiterated its Buy rating on Meta, maintaining a price target of $915, expressing optimism about the potential adoption of these AI devices by 2026. Similarly, Bank of America Securities has upheld its Buy rating with a $900 price target, following the debut of Meta’s new Ray-Ban Display glasses featuring advanced display technology and navigation via hand gestures.
Additionally, Citizens JMP has reiterated a Market Outperform rating with a $900 price target, emphasizing the importance of creative content quality in Meta’s ad auction success. Cantor Fitzgerald has also reaffirmed an Overweight rating with a $920 price target ahead of the upcoming Meta Connect 2025 event, which is expected to showcase new augmented reality and wearable devices. These developments indicate a continued focus on AI and augmented reality products as Meta seeks to enhance its technology offerings.
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