Meta Stock Price, Will It Rise Another 40%? Wall Street's Answer

▲ Meta Platforms/Source: X ©

Wall Street gave high marks to Meta's artificial intelligence (AI) strategy and the potential for expansion of its subscription business, suggesting an upside potential of over 40% over the next 12 months. Major investment banks still rate Meta as one of their top-preferred large-cap tech stocks.

According to crypto media outlet Finbold on June 20 (local time), Meta Platforms' 12-month average target price, based on the opinions of 37 Wall Street analysts compiled by TipRanks, was $815.82. This implies an upside potential of 41.34% compared to the stock price of $577.22 at the time of writing.

Out of the 37 analysts surveyed, 31 gave a 'Buy' rating, and 6 gave a 'Hold' rating. As a result, Meta maintained its 'Strong Buy' rating. The target price range was set from a low of $622.25 to a high of $1,015.

Evercore ISI reaffirmed its 'Outperform' rating and a target price of $930 on June 17, citing the expansion of paid subscription services for Facebook, Instagram, WhatsApp, and Meta AI. Evercore assessed that while this strategy may have a limited impact on short-term performance, it could grow into a highly profitable business that diversifies revenue streams in the long run.

Bank of America maintained its target price of $835 and a 'Buy' rating. Analyst Justin Post analyzed that AI investments are contributing to improved ad targeting, content recommendations, user engagement, and advertising revenue, and will provide new revenue-generating opportunities such as future subscription services, enterprise products, and AI-powered business agents.

Truist set a target price of $840 and highlighted Meta's expansion of its subscription business. Truist projected that paid subscribers for Facebook, Instagram, WhatsApp, and Meta AI could exceed 360 million by 2030, generating over $20 billion in high-margin revenue annually. Additionally, Morgan Stanley maintained its target price of $775 and named Meta as its top-preferred mega-cap tech stock. Analyst Brian Nowak assessed that the market is underestimating the effects of Meta's AI investments, and that future AI-powered search and subscription services will be new growth drivers.

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