Meta gets a meaty PT hike from UBS on AI demand optimism

Analysts at UBS gave a triple-digit price target hike to social media and tech giant Meta Platforms (NASDAQ:META) on Thursday, saying the company stands to benefit from consumer and advertiser demand for AI.

The research firm said the move is based on the longer-term opportunity for the company to extract incremental revenue from various AI products, especially Business Messaging and Meta AI.

UBS said it derives greater confidence in Meta’s ability to deliver against its GenAI CapEx bill and sustain a potentially higher trajectory of ad revenue dollars for longer.

They also think Meta is “not necessarily exposed” to the danger of what may be slower-than-anticipated enterprise AI spending, as the company is the primary user of its technology.

UBS raised Meta’s PT to $812 from $683, implying an upside of 14.6%. Stock is up 22% so far this year, while the S&P 500 is up 3.6%.