BofA Securities reiterated its buy recommendation and raised its price target for Meta Platforms Inc. to $810 from $750, citing reduced regulatory risk following a settlement with 52 U.S. state attorneys general.
The agreement, which caps potential payments at $18 billion over a decade, removes the threat of a high-impact jury verdict and aligns with BofA’s view that regulatory uncertainty had weighed on the stock. Analyst Justin Post noted that the resolution allows Meta’s shares to better reflect upcoming artificial intelligence catalysts, including a consumer AI agent platform scheduled for release in the coming weeks and a new large language model slated for October.
BofA expects multiple AI-related announcements, including top-tier model licensing deals, AI capacity agreements, and monetization platforms for messaging apps. The firm highlighted that market sentiment toward Meta’s AI investments and personal AI product capabilities had been negative, but a strong product rollout could reframe investor perceptions.
Meta’s stock was trading near $578 at the time of the report, below BofA’s $810 target and the broader Wall Street range of $580 to $1,000. The company’s revenue growth of 28% and gross profit margins of 82% were cited as supporting fundamentals.
The settlement also increases pressure on peers such as Google’s YouTube to implement similar teen safety measures and contribute to a state youth safety fund, while Snap may face additional youth safety requirements. Meta separately engaged with the European Commission regarding design features on Facebook and Instagram, and enhanced WhatsApp security with improved two-step verification and added context for unknown callers.
BofA’s price target remains above Meta’s current trading price, reflecting confidence in the company’s AI roadmap and regulatory risk mitigation.
