Meta Platforms (NASDAQ:META) gained fresh momentum after Loop Capital lifted its price target to $888 from $695, while keeping a Buy rating, according to a Thursday research note.

The new forecast implies about 40% upside from current levels, reflecting the firm’s confidence in Meta’s growth trajectory.

• Warning! GuruFocus has detected 2 Warning Sign with META.

Loop Capital highlighted Meta’s leading position among non-hardware beneficiaries of artificial intelligence, suggesting the stock may outperform its Magnificent Seven peers this year. Sanderson also pointed to Meta’s stronger-than-anticipated second-quarter outlook as a key driver.

Earlier concerns that reduced ad spending by China-based retailers would drag on revenue have eased. Meta confirmed in April that some Chinese online merchants cut back ads on Facebook and Instagram amid President Donald Trump’s trade policies toward China. However, advancements in AI tools and services have helped offset those headwinds, according to Loop Capital.

Despite broader market volatility, the bullish call underscores growing optimism around Meta’s ability to monetize its AI investments and sustain ad revenue growth. Investors will watch the company’s upcoming earnings report for further clues on whether Meta can meet heightened expectations and validate its lofty valuation.

Based on the one year price targets offered by 60 analysts, the average target price for Meta Platforms Inc is $706.21 with a high estimate of $935.00 and a low estimate of $466.00. The average target implies a upside of +11.13% from the current price of $635.50.

Based on GuruFocus estimates, the estimated GF Value for Meta Platforms Inc in one year is $531.47, suggesting a downside of -16.37% from the current price of $635.50

This article first appeared on GuruFocus.