Deutsche Bank and Morgan Stanley have both upgraded their outlook for Meta's cloud business, viewing the monetization of excess computing capacity as a highly attractive near-term EPS goldmine. Meta Platforms is planning to enter the cloud infrastructure market, offering external developers access to its AI computing power and model services. Both investment banks maintained 'Overweight' ratings on Meta, with Morgan Stanley setting a target of USD 775 and Deutsche Bank setting one at USD 810, implying upside potential of 38% to 44% relative to the current share price. Morgan Stanley noted that Meta’s Muse series models performed poorly in TerminalBench and SWE-bench Verified benchmarks and that Meta lacks an enterprise-grade sales force, defining its potential cloud offering as a 'Neocloud' model. Morgan Stanley projects Meta will add approximately 2 GW and 3.5 GW of proprietary IT capacity in 2026 and 2027, respectively, and that this business could contribute roughly USD 3 per share to Meta’s earnings in 2028, representing an 8% increase. However, Morgan Stanley emphasized its 'Overweight' rating is not primarily based on cloud services, but on expectations of improved operational efficiency in Meta’s core business, monetization progress of Reels, and AI-driven enhancements to its advertising business.