The Most Optimistic Forecast on Wall Street: Wells Fargo Expects Meta's Stock to Rise to $1,000
Wells Fargo Expects Meta's Stock to Rise 35% Thanks to the AI Agent Muse / Photo: jackpress / Shutterstock.com
Wells Fargo raised its price target for Meta shares from $796 to $1,000, implying a 35% upside from the closing price on October 6 and representing the highest price target for the company’s stock recorded by FactSet, according to MarketWatch.
The bank also maintained its “outperform” rating on the securities of the AI developer and owner of Facebook, which is equivalent to a buy recommendation. Wells Fargo’s rating is one of the most optimistic on Wall Street, according to CNBC.
“We expect [Meta’s leadership] to actively discuss the potential of AI agents,” wrote analyst Ken Gavrels. “We believe that fiscal year 2027 will mark the low point for the company’s earnings per share within the new product cycle — similar to 2022, when Reels began to grow, although in the case of Muse, the AI-driven product cycle could potentially be much larger in scale,” he added.
Gavrels'ki believes that after 2027, Meta will become a company “for which the market will consistently raise its forecasts, as it begins to factor in the contribution of new AI products to revenue in 2028 and beyond.” At the same time, the analyst expects that in the short term, Meta’s management will try to temper expectations regarding the monetization of Muse. Nevertheless, in the longer term, Wells Fargo views Meta as “a company with accelerating growth driven by AI in messaging, advertising tools, and new consumer apps.”
Muse, the personal AI agent that Meta unveiled a month ago, has generated significant interest among both Wall Street and everyday users. Since then, Meta’s stock has risen nearly 20%, while the S&P 500 has gained 1.5%. The Muse app has climbed to the top spot among free apps in the Apple App Store and Google Play.
Most analysts also view the company's stock positively: according to LSEG, 56 out of 63 analysts recommend buying shares of the company that owns Facebook and Instagram, CNBC reports.
This article was AI-translated and verified by a human editor
