Wells Fargo analyst Ken Gawrelski raised his price target on Meta Platforms to $1,000 from $796, making it the highest target among analysts tracked by FactSet. The upgrade reflects expectations that Meta's AI investments, including its Muse AI assistant, can drive substantial earnings growth despite near-term pressure on profits.
Gawrelski expects Meta's third-quarter EPS to fall to $3.72, partly due to an anticipated $10 billion legal-settlement charge. The company is also facing higher AI infrastructure spending, which could weigh on profitability in the near term.
However, Wells Fargo believes these costs are positioning Meta for much stronger growth through 2028. The firm sees the combination of AI monetization, improving infrastructure efficiency, and continued growth across Meta's advertising ecosystem as potential catalysts for a major expansion in earnings and valuation.
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