BofA Maintains Buy on Meta, $900 Price Target

BofA Securities analyst Justin Post reiterated a Buy rating and $900 price target on Meta Platforms Inc. (NASDAQ: META)

“Meta hosted its (well-previewed) Meta Connect event, outlining smart glasses innovation & new AI features.

The highlight was new Meta Ray-Ban Display glasses (priced at $800 as expected) with built-in display technology that can surface Meta AI, built in apps and other contextual information.

The glasses are paired with a Neural Band, which uses surface electromyography sensors to detect subtle hand gestures to navigate the screen.

Meta also launched: 1) Ray-Ban Gen 2 glasses (starting at $379) with longer battery life, conversation tools (see below), and improved video capture, and 2) Oakley Meta Vanguard glasses (priced at $499), aimed at athletes.

Our Take: We demoed the new Display glasses and Neural band and found the glasses to be quite functional (not too heavy), non-intrusive for vision (right side only), and intuitive to navigate.

Given extensive audio and visual use cases, and AI enhancement capabilities, we remain optimistic that AR glasses are likely to become the leading device for the AI era.

However, we think the $800 AR glasses are still early for mass adoption given limited style choices, price point, and battery life (6 hours of mixed use).

However, with a longer battery life & other new features, we would expect Ray-Ban Gen 2 glasses to continue see strong sales this holiday season.”

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