Citi praises Meta's AI device strategy, maintains "buy" rating and target price of $915 for META.US.

Citigroup reiterated its "buy" rating on Meta Platforms (META.US) and maintained a target price of $915.00. Previously, Meta unveiled three new AI smart glasses at the recent Connect conference. Citigroup expressed a stronger optimism towards Meta's AI glasses and broader AI device strategy, believing that with the appeal of design and price, 2026 could be a tipping point for user adoption. This optimism is supported by Meta's strong financial position, with analysis showing a gross profit margin of up to 82% and an overall financial health rating of "GREAT." Citigroup was particularly impressed with the hands-free display and Neural Band functionality in the new Meta Ray-Ban Display glasses during the Connect conference's hands-on experience and foresaw multiple potential applications for the product as technology advances. While acknowledging that AI devices and smart glasses are still in the early stages of development, Citigroup believes that these glasses are a natural extension of AI and may become essential consumer products in reshaping the internet user experience with super intelligence. Citigroup believes that Meta's product roadmap in the short, medium, and long term is expected to continue to increase user engagement, achieve commercial revenue growth, and drive profit margin expansion, describing its AI investments as "highly strategic." In other recent developments, Meta announced a quarterly cash dividend of $0.525 per share to be distributed to Class A and B common stockholders. The dividend is scheduled to be paid on September 29, 2025. In addition to Citigroup, several other major banks have maintained bullish ratings on Meta. Citizens JMP analyst reiterated an "outperform" rating on Meta and maintained a target price of $900, emphasizing the company's expansion of the popular Reels advertising program, which has shown positive results in increasing non-prompts awareness. Bank of America Securities also maintained a "buy" rating and $900 target price on Meta after the Connect conference, noting the company's launch of the new Ray-Ban Display glasses with advanced display technology and gesture navigation. Cantor Fitzgerald continues to rate Meta as "hold" with a target price of $920, expecting the company to introduce more new products at the upcoming 2025 Connect conference.