Why META Stock Can Gain 12%: UBS Analyst Raises Meta Price Target to $812

By Marco Piccolo

UBS has significantly raised its price target on Meta Platforms (META), boosting it from $683 to $812 (a 12% upside from current price levels). The brokerage cited growing confidence in Meta’s ability to capitalize on its AI initiatives, especially in areas like business messaging and the Meta AI assistant.

According to UBS, Meta is uniquely positioned to benefit from rising consumer and advertiser demand for AI tools, while avoiding some of the broader risks currently facing enterprise tech. Analysts noted that Meta’s use of its own AI infrastructure helps insulate it from the recent slowdown in enterprise AI spending that has impacted other players in the space.

The valuation increase also reflects UBS’s assumption of a higher price-to-earnings multiple. The analysts expect 28 times projected 2027 earnings, up from 24 times previously, driven by expectations of faster advertising revenue growth fueled by AI integration.

$META target raised to $812 from $683 at UBS citing long-term AI monetization potential in Messaging and Meta AI. pic.twitter.com/LvSyBZhimL

— JA Schwab, Chart Czar 🇺🇸 (@schwalbtrader) June 26, 2025

AI initiatives drive long-term confidence

Meta’s focus on AI was highlighted by CEO Mark Zuckerberg in the company’s Q1 earnings call, where he identified five key pillars for AI-driven growth: enhanced advertising, immersive social media experiences, business messaging, the Meta AI assistant, and AI-powered devices. UBS sees the most immediate monetization potential in business messaging and Meta AI.

The company has been ramping up its investment in generative AI, including a notable $14.9 billion stake in Scale AI, a data labeling startup critical to training AI models. Scale AI’s CEO Alexandr Wang is set to lead a new Meta AI research lab focused on achieving “superintelligence.”

Zuck just made a power move… $15B Scale AI deal, 49% stake, all while poaching top talent with 9-figure offers. Alexandr Wang leads Meta’s new AI crew. Something big is coming.

— Peter H. Diamandis, MD (@PeterDiamandis) June 13, 2025

UBS analyst Stephen Ju emphasized that while much of Meta’s capital and operational expenditures for AI are already priced into forecasts, potential long-term revenues from these initiatives are not yet reflected in current models. This mismatch underpins the firm’s bullish outlook.

Despite underwhelming early performance reviews of Meta’s open-source Llama 4 model, analysts remain confident that Meta’s strategic AI investments will yield dividends by enhancing engagement and opening up new monetization channels across its core platforms Facebook, Instagram, and WhatsApp.

Stock performance and outlook

Meta stock has been on a strong upward trajectory in recent months, breaking past key resistance levels at $600 and $700. As of now, it trades at $726, just 1.38% shy of its all-time high of $736, which was recorded on February 14, 2025. The stock has gained 6.4% in the past five days and is up 22% year-to-date, significantly outperforming the broader S&P 500.

However, the Meta stock forecast from CoinCodex suggest a more cautious outlook. While the model anticipates META hitting $770 by September, it predicts a decline in momentum later in the year, with the stock projected to trade near $697 six months from now.

Source:: Why META Stock Can Gain 12%: UBS Analyst Raises Meta Price Target to $812