Investing.com -- Truist Securities raised its price target on Meta Platforms to $1,000 from $763, joining Wells Fargo as the highest on Wall Street, citing early traction for its Muse AI agent.

In a note to clients on Tuesday, analyst Youssef Squali kept a Buy rating on the stock and rolled his discounted cash flow valuation forward to the end of 2027.

He added a contribution from Muse to his outer-year estimates, with a base case of $28.5 billion in incremental revenue by 2030.

Meta shares have risen 21% since Muse launched on Sept. 8, against a 2% gain for the S&P 500.

“With AI infusing higher performance across ads, wearables and Muse (building non-ad revenues from powering personal superintelligence, Muse for Enterprise/SMBs), we see Meta as an AI winner long-term,” Squali wrote.

He expects third-quarter revenue of $63.9 billion, up 25% year over year and at the high end of management’s $61 billion to $64 billion guidance. That is also modestly above the $63.3 billion consensus.

Squali expects cost per thousand impressions to rise by double digits again, helped by adoption of Meta’s Advantage+ automated advertising suite. “Meta’s growth [is] increasingly driven by monetization and retention rather than net new users, in our view,” he said.

The analyst included a roughly $10 billion legal settlement with 48 state attorneys general in third-quarter numbers, taking his GAAP operating income to $11.7 billion.

Truist forecasts 2027 capital expenditure of $190 billion, up 32% year over year, against a consensus of $193 billion.

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