Research Alert: CFRA Upgrades Opinion On Shares Of Meta Platforms To Strong Buy From Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Following up on our note yesterday, we upgrade our rating to reflect catalysts we previously provided. This includes the debut of Muse Spark, which is only the start to greater penetration into LLMs and the first "noteworthy" product release from Meta Superintelligence Labs (we expect more to come in 2H). This should open up new revenue streams, with plans to provide paid API access forthcoming. Other AI monetization initiatives remain intact (improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices). Greater cost cutting announcements (up to 20% of workforce), which could come as soon as this month, as well as our belief that META is unlikely to raise its 2026 capex guidance again are other positives. Also, with META trading at about a 28% discount to GOOGL on 2027 EPS (about 17x-23x), we see potential to close the gap. OpenAI's decision to scrap Sora AI last month is also an incremental positive. We hold our 12-month target at $804 based on 22x our 2027 EPS view.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Following up on our note yesterday, we upgrade our rating to reflect catalysts we previously provided. This includes the debut of Muse Spark, which is only the start to greater penetration into LLMs and the first "noteworthy" product release from Meta Superintelligence Labs (we expect more to come in 2H). This should open up new revenue streams, with plans to provide paid API access forthcoming. Other AI monetization initiatives remain intact (improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices). Greater cost cutting announcements (up to 20% of workforce), which could come as soon as this month, as well as our belief that META is unlikely to raise its 2026 capex guidance again are other positives. Also, with META trading at about a 28% discount to GOOGL on 2027 EPS (about 17x-23x), we see potential to close the gap. OpenAI's decision to scrap Sora AI last month is also an incremental positive. We hold our 12-month target at $804 based on 22x our 2027 EPS view.