Piper Sandler Lowers Meta Price Target to $850

Piper Sandler analyst Thomas Champion lowered the price target on Meta Platforms Inc.

(NASDAQ: META) to $850 (from $875) while maintaining an Overweight rating.

“We remain constructive on META following strong 3Q26 results. Management commentary on the Muse launch sounds strong, with data supporting good retention and commercial intent from early users.

Meta will scale Muse as it optimizes compute costs and expects to improve cost efficiency by over 10x in the next year.

We raise top-line estimates for better core business momentum, but raise FY27 opex and capex on Muse/AI investments. Higher costs flow through our DCF and we lower our PT to $850 (from $875).

Our estimates do not include any revenues from Muse, implying future upside.

More than 10M people in the US and Canada have set up Muse in the first six weeks, and retention sounds solid.

About 25% of people who set it up use it on any given day, which management said is more than twice where Threads started.

Shopping is the top use case, with over 25% of weekly users shopping and an average purchase size above $200.

Early adopters skew toward Meta’s highest-value users: over 20% of US Muse users are $1,000+ annual ARPU users for Meta’s existing Family of Apps.”

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