Jefferies has adjusted its outlook on Meta Platforms, reducing the price target to $540 from $585 while maintaining a Buy rating. The revision reflects an anticipated slowdown in revenue growth in the second quarter and increased expenses. However, Jefferies remains confident in Meta’s ability to generate strong returns due to its history of capitalizing on investment cycles. Meta’s increase in expenses and capital expenditure forecasts for 2024 have also been considered, but Jefferies projects an EPS of $24 in 2025, supporting the $540 price target.
