:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2173579493-983422ba3ec0490180fa2e30776cd90d.jpg)
Key Takeaways
- JPMorgan and Jefferies analysts said Meta’s AI and metaverse ambitions make it a top pick.
- The comments came after Meta’s Connect event keynote Wednesday, where the tech giant unveiled new products and AI features.
- The analysts said the event showcased Meta’s early progress in monetizing AI and made them more confident in Meta’s growth opportunities.
JPMorgan and Jefferies analysts said Meta’s (META) AI and metaverse ambitions make it a top pick after the tech giant’s Connect event keynote Wednesday, where Meta unveiled several new products and AI features.
The analysts said the event showcased Meta’s progress in monetizing AI and made them more bullish on the stock, with JPMorgan analysts writing Thursday that they believe Meta has “earned the right to spend big on AI,” given its “early AI benefits in both engagement and monetization.”
Jefferies analysts added that Meta’s “proven ability to successfully scale & monetize new products” added to their confidence in Meta’s “new AI future.”
JPMorgan lifted its price objective for Meta’s stock to $640 from $610, while Jefferies maintained its target of $600, representing about a 5.7% to 12.7% premium above Thursday’s closing price of $567.84. Both targets were higher than the analyst consensus of $587.66 compiled by Visible Alpha, though all but one of the 31 analysts surveyed held a “buy” or equivalent rating for the stock.
Meta shares finished slightly lower Thursday after hitting a record intraday high earlier in the session. They’ve gained about 60% since the start of the year.