Jefferies published a research report stating that it has become more optimistic on Meta Platforms, Inc. (META.US) following the company's AI summit. The broker viewed Muse as a pleasantly surprising killer product, while personal intelligent agents represent significant consumer and enterprise opportunities. Based on a valuation of about 19x projected 2028 EPS, the risk-reward profile is attractive and valuation still has upside potential.

The broker noted that Muse's effectiveness in handling increasingly complex tasks is impressive. Many industry leaders also believe its intuitiveness and simplicity stand out, describing it as “simply easy to use”. At the same time, the competitive responses from Alphabet Inc. (GOOGL.US) and Apple Inc. (AAPL.US) should not be underestimated, as both possess consumer trust, established positions, and native access to key data such as emails, calendars and files. Meta is building a first-party integrated AI ecosystem, including more than 100 eyewear models by year-end, Muse Charm, Muse Mac updates and Muse email functions, while reducing friction and opening monetization pathways through connectors such as Stripe, Shopify, PayPal and Walmart.

The broker cautioned that as usage rises, teams have encountered numerous issues during use, including crashes, delays and slower responses, reflecting growing pressure on capacity that could drive further upward revisions to capital expenditure forecasts. The broker maintained its Buy rating and USD875 target price. (ad/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)