Investing.com -- On Wednesday, Meta Platforms unveiled Muse Spark, the first model from its newly formed Meta Superintelligence Labs, drawing bullish reactions from Wall Street analysts who believe the launch clears a key uncertainty overhang for the stock.

Muse Spark is a natively multimodal reasoning model supporting tool use, visual chain of thought and multi-agent orchestration.

It is available on Meta AI and meta.ai, with a broader rollout across WhatsApp, Instagram, Facebook, Messenger, and Meta's smart glasses expected in the coming weeks. A private API preview has opened to select users.

Morgan Stanley analyst Brian Nowak, who has an overweight rating and $775 price target on Meta, called Muse Spark "the first step in re-rating META," noting that benchmark performance came in better than investors had feared.

"Benchmarks matter less than META's ability to productize its first-party model capabilities," Nowak wrote, highlighting an early-stage shopping assistant as a significant agentic commerce opportunity.

Bank of America analyst Justin Post reiterated his buy rating and $885 price target on Meta, noting the launch arrived ahead of press reports suggesting a potential delay to May.

Post drew a parallel to Google's Gemini trajectory, arguing Meta "could be on a similar trajectory over the next 12 months if model performance continues to improve."

“At ~$625, Meta valued at 18x Street 2027 GAAP EPS (15x adjusting for RL investments), below S&P 500 at ~20x. We see the current valuation as attractive given a large AI opportunity, above industry ad growth, and strong financial position for AI. Reiterate Buy,” Post wrote.

The analysts also flagged Muse Spark's potential to enhance ad targeting, improve return on ad spend and eventually support subscription revenue streams.