Muse has been a boon for Meta. It can soar much higher, Wells Fargo says
Wells Fargo increased its price target for Meta to a bullish $1,000 per share Monday off the back of enthusiasm for viral AI agent Muse.
TL;DR
- Wells Fargo raised Meta's price target to $1,000 per share, up from $796, with an 'overweight' rating.
- The bank expects enthusiastic discussion regarding AI agent opportunities, particularly with Muse.
- FY27 is projected as a trough EPS for a new product cycle, with Muse potentially initiating a larger, AI-driven cycle.
- Meta's stock has increased nearly 20% since Muse's launch on September 8, outperforming the S&P 500.
- Muse has become the top-ranked free app on the Apple App Store.
- While near-term monetization expectations for Muse may be muted, long-term prospects see Meta as an accelerating growth story with AI upside in messaging, ad tools, and new applications.
- Wells Fargo's $1,000 price target is among the highest for analysts covering Meta.
- A majority of analysts (56 out of 63) covering Meta rate it as a 'buy' or 'strong buy'.