Meta Platforms stock got another price-target hike Monday following last week's Connect conference. Analysts at Monness, Crespi, Hardt are bullish on the Facebook parent company's artificial intelligence and augmented-reality innovations.
Monness, Crespi, Hardt analyst Brian White upped his target price for Meta stock to 620, from 570, and reiterated a buy rating in a note to clients. White is among several analysts who have raised their targets following Meta's Connect developer conference last week.
At the event, White wrote, Meta showcased "a panoply of AI and metaverse innovations that we believe will drive more engaging experiences for users, usher in new opportunities for advertisers, attract more developers to the platform, expand the reach of the Meta universe, and increasingly diminish the relevance of smaller platforms."
On the stock market today, Meta gained just under 1% to close at 572.44. Meta stock is hovering near the top end of a 5% buy range from a 542.81 consolidation-pattern buy point identified by MarketSurge.
Orion Preview 'Most Intriguing' From Connect
The price target from Monness, Crespi, Hardt implies roughly 9% upside from Meta's closing price on Friday. In White's view, Meta is "well positioned to benefit from the digital ad trend, expand the reach of its platform, innovate with AI, and leverage a leaner cost structure."
On the other hand, Meta has risks from regulatory scrutiny, White added. "And we believe the darkest days of this economic quagmire are ahead of us," the note said.
At Meta Connect, Chief Executive Mark Zuckerberg announced a lower-cost Quest 3S virtual reality headset, along with new celebrity voices and other updates for the Meta AI chatbot. Zuckerberg also said the Meta AI chatbot had exceeded 500 million monthly active users.
The most intriguing part of the event, White wrote Monday, was Zuckerberg's preview of Meta's Orion augmented-reality glasses. The glasses, while still an internal prototype, feature holographic displays that project the virtual world within its user's surroundings.
"Meta has been working on holographic AR glasses for nearly a decade," White wrote to clients. "In our view, Orion is a leap forward in the world of AR glasses, providing a glimpse into Meta's future."
Analysts Hike Price Targets For Meta Stock
As of Monday, the 68 analysts following Meta hold an average price target of 581.80, according to FactSet. That's up from an average of 570.87 entering September.
Last week, analysts with JPMorgan upped their Meta stock target to 640, from 610. Further, BofA Securities analysts moved to a 630 price target, up from 563.
And analysts with Rosenblatt set a Wall Street high price target of 811 for Meta stock on Thursday, up from 642. Rosenblatt analyst Barton Crockett wrote the target reflects the view that Meta should trade at a higher multiple to its earnings, similar to Apple.
"Meta's Connect highlighted how Meta, courtesy of a willingness to lose more money than any rival on VR/AR and the Metaverse, and an ability to make effective price/performance choices, is uniquely delivering category products that could be described as leading in consumer adoption," Crockett wrote. "The event also highlighted how Meta is continuing to advance its AI capabilities."
Meta Stock Is Near Top Of Buy Zone
With its action Monday, Meta stock is hovering near the top end of a 5% buy range from a 542.81 consolidation-pattern buy point identified by MarketSurge.
Meanwhile, Meta stock has gained more than 60% this year. The rally trails only Nvidia for the best performance among the Magnificent Seven stocks.
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