Wells Fargo Lifts Meta Price Target to $1,000, Flags 2027 Earnings Dip

This week, Wells Fargo lifted its price objective for Meta Platforms to $1,000 from $796. That level places it among the most ambitious forecasts on Wall Street.

Wells Fargo maintained its overweight rating on the stock. In the same report, however, it forecasts that Meta's earnings will hit a low point before its AI initiatives start contributing to projections.

Wells Fargo Strengthens Meta Bet With $1,000 Price Target

Based on Meta's closing price of $738.88 on October 6, the updated target suggests roughly a 35% gain, as per Google Finance data.

Analyst Ken Gawrelski raised his target for the second time in roughly two weeks. He previously increased it from $640 to $796 in late September.

At that time, Gawrelski cited early demand for Muse, the AI agent that Meta launched on September 8. In his most recent note, Wells Fargo predicted Meta would keep rising due to Muse's performance, as reported by CNBC.

The stock's performance already reflects that momentum. Since Muse's introduction, Meta shares have climbed nearly 20%, while the S&P 500 has risen only 1.5%.

This rally reversed a poor start to the year. On September 7, Meta was down roughly 7% year-to-date, according to fund manager Dan Niles. It currently sits 11.94% higher for 2026.

The 2027 Caveat in Wells Fargo's Meta Forecast

Gawrelski described Muse as the beginning of a new product cycle, likening it to the initial phase of Reels.

“[We] see FY27 as trough EPS of new product cycle, akin to 2022 beginning of Reels though w/ Muse a potentially much larger, AI-driven product cycle,” the analyst said.

Beyond 2027, Gawrelski anticipates a steady increase in earnings estimates as the market incorporates AI product revenue.

Other analysts take a more cautious view on the stock's price. TipRanks data from 46 analysts over the last three months gives an average 12-month target of $806.13.

JPMorgan increased its target to $920 last month. The bank contended that Muse could become the most popular consumer AI application since ChatGPT. On the lower end, BMO Capital maintains a $580 target with a Hold rating.

Jim Cramer also backs Meta. On October 6, the "Mad Money" host cited Meta and Microsoft as blue-chip AI stocks he prefers.

Cramer admitted that Meta shares faltered early in 2026. Nonetheless, he expressed confidence that Zuckerberg and his team would find a way to profit from AI investments.

“I thought that Mark Zuckerberg and his dream team are brilliant and they’ll figure something out,” he stated.

Niles is more cautious following the rally. He stated he favors Meta less than he did in September but still perceives momentum.

Gawrelski predicts Meta's upcoming earnings remarks will establish subdued expectations for near-term Muse revenue. The stock's response will indicate whether investors are prepared to hold out until after 2027.