Citigroup praises MetaAI's device strategy, maintains "Buy" rating and target price of $915

Zhitong
2025.09.22 03:51
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Citi reiterated its "Buy" rating on Meta Platforms with a target price of $915, citing the strong performance of its AI device strategy. Meta launched new AI smart glasses at the Connect conference, and Citi expressed optimism about their design and pricing, believing that 2026 will be a key year for user adoption. Meta's financial condition is robust, with a gross margin of up to 82%. Additionally, Meta announced a quarterly cash dividend of $0.525 per share for Class A and Class B common stock

According to the Zhitong Finance APP, Citigroup has reiterated its "Buy" rating on Meta Platforms (META.US) and maintained a target price of $915.00. Previously, Meta launched three new AI smart glasses at the recent Connect conference. Citigroup expressed stronger optimism regarding Meta's AI glasses and broader AI device strategy, believing that the appeal of design and pricing could lead to a critical adoption point for users by 2026. This optimism is supported by Meta's robust financial condition. Analysis shows that the company has a gross margin of up to 82%, with an overall financial health rating of "GREAT."

During the hands-on experience 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, foreseeing multiple potential application scenarios as technology develops. Although Citigroup also acknowledged that AI devices and smart glasses are still in the early stages of development, it believes these glasses are a natural extension of AI and could become essential consumer products in the process of superintelligence reshaping the internet user experience.

Citigroup believes that Meta's product roadmap is expected to continuously enhance user engagement in the short, medium, and long term, achieve commercial revenue growth, and drive margin expansion, with its AI investments described as "highly strategic." In other recent developments, Meta announced a quarterly cash dividend of $0.525 per share for Class A and Class B common stock, scheduled to be paid on September 29, 2025.

In addition to Citigroup, several other major firms have maintained bullish ratings on Meta. Analysts at Citizens JMP reiterated their "Outperform" rating on Meta and maintained a target price of $900, emphasizing that the company has expanded its popular Reels advertising program, which has shown positive results in enhancing non-prompt awareness. Bank of America Securities also maintained a "Buy" rating and a $900 target price following Meta's Connect conference, noting that the company launched new Ray-Ban Display glasses with advanced display technology and gesture navigation features. Cantor Fitzgerald continues to give Meta an "Overweight" rating and set a target price of $920, expecting the company to launch more new products at the upcoming 2025 Connect conference

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