When Muse made its debut last month, it injected a boost into AI trading. Now, Wall Street wants to know how Meta intends to turn this momentum into profit.

As Meta is about to release its third-quarter financial report, Wall Street analysts are focusing on the company's agency-based AI and hope to see specific details regarding its commercialization path.

The financial reporting season has not been kind to Meta recently. Due to the company's high capital expenditures, Meta often bears the brunt when investors have doubts about AI transactions. However, Muse might provide some comfort to investors concerned about large expenses, as it shows where some of the funds have gone.

The following are some key aspects that top analysts will pay attention to in this financial report.

Bank of America

Bank of America analyst Justin Post pointed out in the Meta earnings outlook that his team believes Wall Street's consensus forecast for revenue is on the low side.

He stated that Bank of America believes that the quarterly revenue that more accurately reflects investors' expectations should be $64 billion. Therefore, they maintain a 'Buy' rating for the Meta stock and have set a bullish target price of $810.

He wrote: "Recently, the release of the AI product has enhanced the market's confidence in the company's AI execution capability. We believe that among the companies we cover, Meta faces the lowest risk of AI disrupting its core business. Although earnings per share in 2027 may be pressured due to increased AI investments, capacity assets are currently under construction. We think that the momentum of Muse and Model can drive an expansion in valuation multiples, and by then, the stock price should correspond to around 22 times earnings per share for 2027."

JPMorgan Chase

JPMorgan's Doug Anmuth is bullish on Meta stock, maintaining a 'overweight' rating and a target price of $920, and indicates that their team expects the stock to trade at around 26 times GAAP earnings per share, with an estimated earnings per share of $35.45.

However, he added that due to the third-quarter settlement reached with the attorneys general of 52 states regarding the impact of its application on children, Meta will incur $10 billion in legal costs, which is why they have lowered their forecasts for Meta's profits. The analyst noted that this expense may not have been factored into the company's guidance. As a result, JPMorgan has lowered its earnings per share forecasts for Meta for 2026 and 2027 by 10% and 2%, respectively.

Wells Fargo

Bank of America analyst Ken Gawrelski is extremely bullish on Meta stock ahead of the financial report, giving it a 'buy' rating and a target price of $1,000. The core logic behind the bank's optimism lies in the AI launch plans of Meta. Gawrelski and his team believe that these measures will lead to significant growth.

He wrote: " Meta Muse Wonder has reached the cutting-edge level of AI, performing better than Fable as well as OpenAI and Google's top models, second only to Opus on Artificial Analysis Intelligence Index with a score of 5.5. It is expected that the new model will enhance the capabilities and use cases of Meta Muse; currently, its daily active users have exceeded 2 million."

Deutsche Bank

Deutsche Bank believes that Muse will help Meta consolidate its position as a leader in the new generation of AI. Therefore, it reiterates its 'buy' rating and sets a bullish target price of $820, while also assigning a higher valuation multiple, which implies a price-earnings ratio of 27 times for its earnings in 2027.

Analyst Benjamin Black stated: "We believe that we may be at the beginning of a fruitful product cycle, which will indicate the potential returns that the substantial infrastructure and R&D investments Meta has made in AI agency, corporate business, and advertising may bring."

RBC Capital Market

The target price given by Brad Erickson of RBC is relatively low, currently at $770, but it still maintains a 'outperforming the market' rating.

Erickson indicates: 'For META, in addition to continuing to lead the industry in growth, we also wish to understand how the adoption of enterprise agents has been progressing since the company started monetization earlier this quarter.'