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Investing.com -- Piper Sandler named Meta Platforms (NASDAQ:META) its “top large-cap pick” and raised its price target to $808, saying fresh artificial-intelligence tools are lifting ad-conversion rates enough to support mid-teens revenue growth for several years.
The brokerage kept an Overweight rating and nudged its 2026 and 2027 revenue forecasts up 1% and 3%, respectively, after modelling the impact of new machine-learning systems the social-media giant began rolling out early this year.
“Meta’s investments in AI are transforming its advertising technology, driving higher ad performance, conversion rates, and ROAS,” the analysts wrote, citing products such as GEM, Andromeda and Lattice (OTC:LTTC) that together could boost conversions by roughly 7% a year.
Piper said higher ad prices look sustainable because they stem from better targeting, not weaker user engagement, and pointed to additional upside from monetising newer platforms.
The firm estimates Threads could generate more than $500 million in ad sales in 2026, while WhatsApp could top $7 billion under conservative assumptions.
Meta shares were up about 0.4% at $729 in afternoon New York trading, leaving Piper’s new target roughly 11% above current levels.
The brokerage also highlighted Meta’s focus on “conversion” – the rate at which an ad view leads to a purchase or other desired action – noting that the cost per click and per engagement has fallen relative to the cost per thousand impressions over the past two years.
“We are comfortable with higher ad pricing as this is driven by better conversion, and not lower engagement,” the note said.
Piper added that a May investor day could bring more detail on Meta’s AI road map and progress toward monetising WhatsApp, which it views as a key swing factor for revenue over the next three years.