Meta kept at 'buy' by Jefferies, Bank of America as Muse gains early traction

Meta kept at 'buy' by Jefferies, Bank of America as Muse gains early traction

Tue, September 22, 2026 at 9:00 PM GMT+3 2 min read

Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is winning early traction with its Muse artificial intelligence agent, prompting Bank of America and Jefferies to raise their outlook for the company as adoption and potential monetization come into focus.

Both have maintained 'buy' ratings on Meta Platforms.

Jefferies raised its price target on Meta to $875 from $710, citing what it described as unprecedented consumer adoption of Muse, its monetization potential and improving investor sentiment.

Muse surpassed 2.5 million cumulative global app downloads within its first 13 days, with Jefferies saying it was ahead of comparable launches for Claude and Gemini.

Jefferies said the new price target implies a valuation of 25 times projected 2027 earnings, up from 20 times previously.

Jefferies estimated that, under one scenario, 1 billion users by the end of 2027 and a 3% conversion rate to a $30 monthly subscription would produce 30 million subscribers and $10.8 billion in annualized revenue.

The analyst also pointed to commerce as a potential revenue driver, noting that a rival AI agent had reported early users transacting more than $1,300 a month.

BofA cited positive early user feedback on Muse's practical utility, including its ability to execute multi-step tasks with limited user intervention.

The bank said Muse reached No. 1 in the US iOS App Store's productivity category shortly after its September 8 launch and had a 4.9-star rating across more than 25,000 reviews.

Data from Sensor Tower showed Muse exceeded 300,000 daily downloads and reached approximately 2.5 million cumulative US downloads by September 19, compared with about 1.6 million for Instagram and 3.6 million for ChatGPT over similar periods.

BofA noted that privacy and trust remain considerations for broader adoption, with some reviewers expressing discomfort about granting the agent broad access to personal information.

The bank said monetization of Muse through advertising, subscriptions and commissions was unlikely to be material before 2028, while multiple expansion rather than 2027 estimate revisions could drive Meta's stock performance until then.

Both banks said Meta's substantial computing capacity could support continued Muse adoption.