On April 8, Meta Platforms (NASDAQ: META) unveiled its latest artificial intelligence (AI) model, Muse Spark, prompting some bullish responses from Wall Street analysts.
Muse Spark marks the first release from the newly established Meta Superintelligence Labs with a natively multimodal reasoning model capable of tool use, visual chain-of-thought processing, and multi-agent orchestration.
“It will power a smarter and faster Meta AI, and over time unlock new features that cite recommendations and content people share across Instagram, Facebook, and Threads… Muse Spark is our most powerful model yet…. We will also be offering the model in private preview via API to select partners,” Meta wrote about the new product.
As such, the new tool is expected to aid in removing the uncertainty overhang from stock. For example, Morgan Stanley analyst Brian Nowak maintained his “Overweight” rating and a $775 Meta price target, describing the new model as “the first step in re-rating META.”
“Benchmarks matter less than META’s ability to productize its first-party model capabilities,” Nowak wrote, emphasizing that while Muse’s benchmark performance exceeded investor expectations, execution on the management’s part is going to play a crucial role.
Muse Spark could match the success of Gemini, Bank of America says
At Bank of America (BofA) Securities, analyst Justin Post reiterated a “Buy” rating and gave a $885 META share price target.
The analyst compared Muse’s trajectory to that of Google Gemini, suggesting the company could follow a similar path over the next year if model performance continues to improve.
Likewise, he argued that Meta’s valuation remains compelling, trading below the S&P 500 average despite strong fundamentals and a sizable AI opportunity.
“At ~$625, Meta valued at 18x Street 2027 GAAP EPS (15x adjusting for RL investments), below S&P 500 at ~20x. We see the current valuation as attractive given a large AI opportunity, above industry ad growth, and strong financial position for AI. Reiterate Buy,” Post wrote.
Mizuho sees Meta on the AI leaderboard
Mizuho also reaffirmed its “Outperform” rating on Meta and kept its $850 price target intact following the Muse Spark rollout.
Analyst Lloyd Walmsley said the earlier-than-expected launch signals the firm’s growing ability to compete at the frontier of large language models.
In addition, he highlighted user growth as another key catalyst, particularly around a potential shopping mode within the AI ecosystem.
The firm thus sees meaningful monetization opportunities in future search products and, more immediately, from search-driven data used to improve ad targeting across core platforms.
Is Meta stock a buy?
All in all, the new data highlights Wall Street’s strongly bullish consensus on Meta. Specifically, out of forty-five ratings collected over the past three months on TipRanks, thirty-nine recommend buying the stock, six suggest holding, and none advise selling.
Meta stock price targets further reinforce this optimism. Namely, the average twelve-month forecast stands at $850.93, implying roughly 38.94% upside from the current price. Estimates vary widely, howeverm with a high target of $1,144 and a low of $550.
Overall, the market is hoping for substantial growth in the months to come, most of it tied to Meta’s expanding AI initiatives and core advertising potential, even as opinions differ on how much value these drivers will ultimately unlock.
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