Meta: Jefferies lowers target price

(CercleFinance.com) - Jefferies reinstates its "buy" rating on Meta Platforms (formerly Facebook) shares, while reducing its target price from 350 dollars to 330 dollars, a new target price that is based on a multiple of 22x its expected FY 2023 EPS.


"Given our view that FB's investments are likely to remain elevated during a period of slowing rev growth, we lower our FY23 op. income by 7%," the broker said.

"That said, we believe the investments in AI for ad relevance, AR/VR, and Shopping are prudent and note that at current levels the stock is embedding negative value for the Reality Labs business," it adds.


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