UBS analysts raised the price target on Meta Platforms (NASDAQ:META) to $335 per share from the prior $300, while maintaining a Buy rating and a Top Idea designation.
Generative AI technology is seen as the next key growth driver with analysts fully expecting the social media company to “broadly” integrate this next-gen technology broadly into its apps.
The analysts believe Meta will “increasingly be viewed as an AI winner, providing another leg to the bull case.”
“There has been chatter of Meta AI tools, but investor conversations have focused narrowly on the ad tech angle, less around consumer applications that could drive new engagement and ad units. We do not think this is priced into shares currently,” they said in a client note.
As such, they see a 48% upside potential relative to their bull-case scenario.
“We expect the impending move back into the Russell 1000 Growth Index (from value) to cause growth investors to revisit the story (and like what they see),” the analysts concluded.
Meta shares closed at $288.73 on Friday.