Citigroup has reaffirmed its "Buy" rating on Meta Platforms, Inc. (META.US) while maintaining a target price of $915.00. This follows Meta's recent unveiling of three new AI smart glasses at its Connect conference. Citigroup expressed heightened optimism regarding Meta's AI glasses and broader AI device strategy, suggesting that 2026 could mark a critical user adoption tipping point driven by appealing design and pricing. This optimism is supported by Meta's robust financial position.
Analysis reveals the company maintains an impressive gross margin of 82% with an overall financial health rating of "GREAT." During hands-on testing at the Connect conference, Citigroup was particularly impressed with the heads-up display and Neural Band integration features in the new Meta Ray-Ban Display glasses, anticipating multiple potential applications as the technology evolves.
While acknowledging that AI devices and smart glasses remain in early development stages, Citigroup views these glasses as a natural extension of AI technology that could become essential consumer products as super intelligence reshapes internet user experiences. The firm believes Meta's short-term, medium-term, and long-term product roadmaps are well-positioned to continuously enhance user engagement, drive commercial revenue growth, and expand profit margins, describing the AI investments as "highly strategic."
In other recent developments, Meta announced a quarterly cash dividend of $0.525 per share for both Class A and Class B common stock, scheduled for payment on September 29, 2025.
Beyond Citigroup, several other major institutions maintain bullish ratings on Meta Platforms, Inc. Citizens JMP analysts reiterated their "Outperform" rating with a $900 target price, highlighting the company's expansion of the Reels trending ads program, which has shown positive results in improving unaided brand awareness. Bank of America Securities also maintained its "Buy" rating and $900 target price following Meta's Connect conference, noting the introduction of new Ray-Ban Display glasses featuring advanced display technology and gesture navigation capabilities. Cantor Fitzgerald continues to assign Meta an "Overweight" rating with a $920 target price, anticipating additional product launches at the upcoming 2025 Connect conference.