Wells Fargo raises Meta (META) price target to $1,000 from $796, but calls 2027 a 'trough' earnings year for Muse ramp
What happened
Wells Fargo analyst Ken Gawrelski raised his price target on Meta Platforms (META) to $1,000 from $796 while maintaining an Overweight rating — one of the highest targets among the 69 analysts polled by FactSet (average target: $796.79). At the same time, he cautioned that 2027 will likely be a 'trough' year for earnings, with the new Muse AI agent generating only modest revenue. He expects Wall Street's fiscal 2027 consensus estimates to need a 'meaningful reset,' citing rising infrastructure costs and a $5 billion loss in capacity resales as Meta keeps all of its hardware for Muse. After that reset, he expects Meta to become a 'positive revisions story' as massive, high-margin AI revenue begins in 2028.
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Start your free 14-day trialWho’s affected
- META — the direct call: higher long-term target paired with a near-term earnings-reset warning
- AMD, NVDA — AI compute suppliers; Citi's $800 AMD target was explicitly tied to Meta's Muse agentic-AI CPU demand
- MSFT, GOOGL, AMZN — hyperscaler peers whose AI infrastructure spending and 2027-28 AI revenue ramps face the same 'trough then payoff' debate
Sources