JPM upgrades Meta to Overweight, sets $820 price target

TechFlow reports, according to J.P. Morgan Research, a September 10, 2026 note from J.P. Morgan upgrades its rating on Meta to Overweight from Neutral and raises its price target from $640 to $820. Based on the closing price of $653.69 on September 9, this represents an upside of approximately 25%. The Muse AI agent ranked third on the second day on the U.S. App Store, with early usage reaching 10 times that of the testing cohort. J.P. Morgan projects capital expenditures of $243 billion in 2027, a 70% year-over-year increase, and $284 billion in 2028.

J.P. Morgan notes that frontier models like Muse Spark 1.3 are already competing with Claude and GPT, with Watermelon poised for launch, while enterprise agents and model APIs open monetization pathways beyond advertising. The price target is based on a 23x multiple on the 2028 GAAP EPS of $35.44. The report highlights risks including heavy AI investment with delayed monetization, revenue growth slower than expected, lack of synergy among AI products, intensifying competition, and potential impact from litigation on core advertising revenue.