Citi: Maintains "Buy" rating on Meta (META.US), expects next week's Connect conference to be a near-term catalyst.

Citi placed Meta Platforms (META.US) on a 90-day positive catalyst watch, citing the company's Connect conference to be held on September 23 local time, with the market expecting updates on AI products and broader product strategy. The catalyst watch period expires on December 15. Analyst Ronald Josey maintained a "Buy" rating and an $800 price target. Josey expects Meta to introduce its next-generation model Muse, as well as the company's Meta glasses strategy. He said Meta's accelerated pace of product launches and strong early adoption of Muse have strengthened his confidence in the potential returns on AI investment. The analyst also noted that AI use cases are expanding across personal, commercial, and enterprise applications. Citi said that improving Reels monetization, Meta's user scale, engagement growth, advertising innovation, and AI opportunities all support its valuation. The analyst said risks to the price target include: weakening online advertising spending, intensifying competition, regulatory pressure, and Meta's non-advertising businesses struggling to make a meaningful contribution.