After Meta (META) reported stronger-than-expected first-quarter results and provided Q2 guidance that also beat analysts' average estimates, Truist, a U.S. bank, raised its price target on the name to $720 from $700.

Truist kept a Buy rating on META.

Why Truist Is Bullish on META

The performance of Meta's ads has been boosted by AI, with the technology increasing the conversion rates and prices of the tech giant's ads, Truist reported.

What's more, Meta is essential for some advertisers, Truist believes.

Meanwhile, Meta's AI system, Llama 4, is enabling the company to provide more services and enhancing its e-commerce offerings, Truist reported.

Finally, Truist is impressed by the company's user metrics.

An Investment Bank Hiked Its Price Target on META

Investment bank Stifel increased its price target on the name to $655 from $628 while keeping a Buy rating on the shares.

According to the investment bank, Llama is boosting the efficacy of the company's offerings, while it may be able to monetize its AI technology in the longer term.

The Recent Price Action of META Stock

In the last month, the shares have gained 8%, while they have dropped 16% in the last three months.

While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey