New York, NY – In a new development, New Street Research has upgraded its rating on shares of Meta Platforms (ticker: META), the parent company of Facebook. Analyst Dan Salmon has raised his rating to Buy from Neutral and increased the price target on the stock to $350 from $285. The upgrade is primarily driven by optimism surrounding Meta’s advancements in artificial intelligence.
Shares of Meta Platforms saw a slight increase of 0.4% in morning trading and were valued at $292.76. So far this year, the stock has seen an impressive surge of 142%. Investors are now looking forward to the company’s earnings report, which is scheduled to be released on Wednesday after the market closes.
One of the key developments contributing to the positive sentiment is the recent introduction of Llama 2. This initiative, developed in partnership with Microsoft (MSFT), provides developers with an open-source large language model that facilitates the creation of generative AI tools.
Dan Salmon stated in a research note, “After carefully examining the details of the Llama 2 release, particularly the widespread support for Meta’s open approach, we firmly believe that this initiative will significantly expand the utilization of Meta’s large language model.” Salmon also highlighted his belief that generative AI capabilities have the potential to create long-term monetization opportunities for Meta through platforms such as the Metaverse, Messenger, and WhatsApp.
The positive outlook from New Street Research highlights the growing confidence in Meta Platforms and its advancements in artificial intelligence. Investors will be keeping a close eye on upcoming developments and financial updates from the company.