After Meta Connect, analysts view Muse's prospects positively

Wall Street analysts' sentiment toward Meta Platforms' stock was largely positive following the Meta Connect event. The company shifted its main focus at the event to the new AI agent Muse, presenting it as a significant part of the development of future products and technological devices.

Evercore ISI maintained an "Outperform" rating on Meta's stock and an $860 price target. According to the bank's analysts, Muse's development is becoming more important to Meta than the company's previously outlined metaverse strategy. Their forecast suggests that if Muse's growth continues, investors might assign Meta a 25-30x multiple on 2028 earnings, which would push the stock price above $1,000.

Evercore also believes that investor attitudes toward Meta's AI positioning could shift. Additionally, the analysts noted that no specific updates on Muse's user numbers or Meta Business Agents were announced at the event.

Raymond James analyst Josh Beck maintained a "Strong Buy" rating on Meta's stock and raised the price target to $860. According to his estimates, Muse is accumulating more than 300,000 downloads per day. In Beck's base-case scenario, the AI agent could eventually generate more than $50 billion in revenue, with annual costs of approximately $12 billion.

Mizuho analyst Lloyd Walmsley maintains an "Outperform" rating and a $750 price target on Meta's stock. According to him, the company may try to further accelerate user growth through the launch of Muse Charm, a pendant-like device expected to debut before the holiday season.

Walmsley believes Meta's AI product has significant momentum. However, he expressed more caution regarding Meta's new $1,299 VR headset, highlighting its high price.

At Meta Connect, the company also discussed directions for expanding Muse. Meta plans to integrate the AI agent into its smart glasses, and it also announced partnerships with Walmart, Best Buy, Shopify, Expedia, and Instacart. The company plans to monetize Muse through a commission-based model on transactions conducted by businesses via the agent.

Investor attention toward Muse had already increased significantly before the event. According to Reuters, the agent's U.S. launch boosted AI-related optimism in the tech sector and contributed to the rise in Meta's stock price.