Meta Platforms Positioned for AI-Driven Growth, Raymond James Reiterates Strong Buy Rating

Raymond James analysts reaffirmed their Strong Buy rating and maintained a $675 price target on Meta Platforms (NASDAQ:META), citing the company's promising AI and GenAI monetization prospects heading into 2025.

The analysts highlighted advancements in Meta’s Deep Learning Recommendation Model (DLRM), which are expected to boost user engagement by mid-single to low-double-digit percentages. Additionally, Meta AI, with over 500 million monthly active users, is projected to unlock a $10 billion-plus search and assistant market opportunity by 2026, particularly within targeted verticals such as travel and entertainment.

The analysts noted that Raymond James has taken a Street-high stance on Meta’s 2025 capex, driven by detailed projections for investments in DLRM, Meta AI, and Llama infrastructure. However, the buyside appears to have already accounted for elevated capex levels, mitigating concerns about potential negative impacts.

Meta’s valuation, currently near a market price-to-earnings multiple, is seen as having room for expansion as the AI and GenAI monetization narrative continues to strengthen. Furthermore, the analysts identified additional upside potential from Reality Labs, where losses could peak next year as mainstream augmented reality use cases, including smart glasses, begin to gain traction. These developments reinforce optimism about Meta’s long-term growth trajectory and strategic positioning in AI innovation.