June 26 – Meta Platforms (NASDAQ:META) shares climbed more than 2% Thursday morning after UBS significantly raised its price target, citing long-term gains from artificial intelligence-related initiatives.

• Warning! GuruFocus has detected 6 Warning Sign with META.

UBS boosted its target on the stock to $812 from $683, suggesting a potential upside of nearly 15%. The firm pointed to rising consumer and advertiser interest in AI tools, especially in areas like Business Messaging and Meta AI, as key revenue drivers going forward.

Analysts at UBS expressed increased confidence in Meta’s ability to generate returns from its investment in generative AI infrastructure. They also noted that Meta’s direct use of its own AI technology could shield it from broader weaknesses in enterprise AI spending, which has recently shown signs of slowing.

The brokerage added that Meta’s monetization of AI could help maintain a stronger-than-expected pace in advertising revenue over the longer term. That confidence supports the higher valuation, especially with Meta already gaining 22% year-to-date, far outpacing the S&P 500’s 3.6% rise.

The bullish price revision reflects optimism that Meta’s expanding AI capabilities may enhance engagement and create new monetization opportunities across its platforms, despite a competitive and fast-moving tech landscape.

The stock’s recent momentum, paired with upbeat analyst sentiment, suggests investors are watching Meta’s AI strategy closely as a potential driver of sustained growth.

This article first appeared on GuruFocus.