Wells Fargo's analyst Ken Gawrelski has increased the price target for Meta Platforms from $796 to $1,000 per share, indicating a potential upside of nearly 35% from the stock's recent closing price. This bullish outlook is largely driven by the positive reception of Meta's AI agent Muse, which has generated considerable excitement since its launch on September 8.
The stock has risen nearly 20% in that time, outperforming the S&P 500's 1.5% gain. Gawrelski anticipates that while Meta may set 'muted expectations for near-term monetization' of Muse, the company is positioned for consistent growth as AI product revenues begin to contribute significantly after 2027.
This perspective aligns with the broader sentiment among analysts, with 56 out of 63 rating Meta as a buy or strong buy, highlighting strong confidence in the company's future prospects