HSBC upgrades Meta to Buy on AI-driven growth

HSBC upgraded Meta Platforms (META) to Buy from Hold with a price target of $900, up from $610. The stock in premarket trading is up 11%, or $77.02, to $772.23. The company reported strong Q2 results as its artificial intelligence tools and network effect supported double-digit revenue growth, the analyst tells investors in a research note. HSBC believes Meta is well positioned to outpace digital advertising market growth. The company’s AI capabilities improve targeting and the quality of content, creating new growth opportunities, contends the firm. It cites higher operational forecasts and a higher valuation multiple for the upgrade.