Arete analyst Rocco Strauss upgraded Meta Platforms to Buy from Neutral with a price target of $735, up from $614. The firm cites Meta's "flexible" cost base, subscription growth, and internal AI progress for the upgrade. Meta's high-margin subscription business should help the company's margins recover amid if "aggressive" AI data center spend, the analyst tells investors in a research note. Arete believes the company could become a "neocloud with excess compute."
