Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has earned a repeat ‘Buy’ rating from Bank of America following the unexpected early launch of the company’s newest large language model, Muse Spark.
Bank of America also kept its price target on Meta unchanged at $885, with shares up 3.4% at about $633 on Thursday afternoon.
The bank’s analysts described the introduction of Muse Spark as a positive development that “helps clear an uncertainty overhang for the stock,” highlighting that earlier reports had suggested a possible delay in the model’s debut.
The report noted that Meta’s roadmap for improved AI capabilities throughout 2026 creates “scope for iterative performance gains across upcoming model releases,” positioning the company to build on its initial entry into frontier AI.
The analysts highlighted the strategic importance of the rollout. “Earlier reports indicated Meta had delayed the model launch to at least May, and we think an earlier release helps clear an uncertainty overhang for the stock,” they wrote.
On valuation, the analysts noted that Meta’s current trading multiple is below broader market averages. “At ~$625, Meta valued at 18x Street 2027 GAAP EPS (15x adjusting for Reality Labs investments), below S&P 500 at ~20x,” they wrote, suggesting the stock’s valuation remains attractive against long‑term earnings expectations.
Bank of America further drew a parallel with competitor activity, noting that Google experienced improved sentiment following advancements with its Gemini 3.0 model and proposing that Meta could see a similar trajectory if future model performance continues to strengthen.
“Meta could be on a similar trajectory over the next 12 months if model performance continues to improve,” they wrote.
Bank of America’s outlook underscores the firm’s view that Meta’s ongoing investments in AI and advertising could support both product innovation and monetization opportunities over time, although the analysts did not provide specific revenue forecasts tied solely to Muse Spark.