Citizens Maintains Market Outperform on Meta, $885 Price Target

Citizens analyst Andrew Boone reiterated a Market Outperform rating and $885 price target on Meta Platforms Inc.

(NASDAQ: META).

“Meta announced an ~$100B capital raise that includes $22.5B of common stock via forward sales, $12.5B of convertible mandatory preferred (which converts in 2029), and up to $60B via ATM.

This funds the company’s 2027 cash flow shortfall and emphasizes the amount of compute that Meta is bringing online, as the compute needed for its advertising business increases (including business tools), Muse usage ramps (including business agents), and its enterprise/AI model sales business build out intensifies.

Stepping back, the bet Meta is making is that compute remains constrained for the next 2–3 years, and that it can generate significant revenue across Muse and/or model sales while this raise gives it better control of its infrastructure.

This as the ramp in compute gives us confidence that Meta can stay at the frontier of AI model intelligence.

Said differently, Meta is funding optionality today, but we believe it is increasingly well-positioned to realize the benefits of monetizing this compute.

We also believe that AI remains constrained over the next 2–3 years regardless of the supply set to come online. We maintain our Market Outperform rating and $885 price target on Meta.”

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