AI layout becomes the focus of financial reports, Morgan Stanley raises Meta's target price to $750 before earnings
Morgan Stanley analyst Brian Nowak raised the target price for Meta Platforms from $650 to $750 on July 21, maintaining an "Overweight" rating. This adjustment is based on the valuation increase in the internet industry, considering macroeconomic improvements and tariff reductions in China. The analyst pointed out that Meta's GPU machine learning technology will enhance user engagement and revenue growth. Meta needs to prove its ability to achieve the target of $30 earnings per share by 2026 and demonstrate the reasoning capabilities of the new generation Llama model. The market is focused on its progress in artificial intelligence strategy and the commercialization of generative AI products
According to the Zhitong Finance APP, on the eve of the earnings report release, Morgan Stanley analyst Brian Nowak on July 21 significantly raised the target price of Meta Platforms (META.US) from $650 to $750, maintaining an "Overweight" rating. This rating adjustment is based on the overall valuation increase in the internet industry, mainly considering favorable factors such as improvements in the macroeconomic environment and tariff reductions in China.
The Wall Street investment bank simultaneously updated its valuation model to the mid-cycle of 2026. Analysts pointed out that Meta's core growth engine—GPU-based machine learning technology—continues to optimize, which will effectively enhance user engagement and monetization capabilities, driving accelerated revenue growth.
Morgan Stanley emphasized that Meta's performance in the second half of 2025 will depend on two key factors: first, the company needs to prove to the market that it can achieve a target of at least $30 in earnings per share by 2026; second, the new generation Llama model must demonstrate breakthrough reasoning capabilities.
As Meta is set to release its earnings report on July 30, Eastern Time, market attention is focused on its progress in artificial intelligence strategy. The bank specifically pointed out that the commercialization of generative AI products is crucial, as it will directly relate to the market's assessment of the return on investment for its recent talent recruitment and capital expenditures
