Raymond James Lifts Meta Price Target to $850

Raymond James analyst Josh Beck raised the price target on Meta Platforms Inc.

(NASDAQ: META) to $850 (from $825) while maintaining a Strong Buy rating.

“The Call: While our June 2024 call (LINK) for Meta to enter the Cloud and API business was perhaps a bit early, a recent API launch (LINK) and a NYT report (LINK) citing a potential Meta-Anthropic compute deal support our thesis.

Meta Compute fundamentally alters the AI Calculus, providing a critical ‘off-ramp’ should Meta AI, SMB Business Agents, and/or Meta Model API inference demand fall short of expectations, allowing Meta to pivot scarce and leading-edge data center capacity towards the attractive ROIC AI Cloud market.

Please see Brian Gesuale’s recent initiation of SPCX titled The Defining Infrastructure Company of Our Time (LINK) for a deeper dive on SpaceX AI Stack. As such, we reiterate our Strong Buy rating.”

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