Jefferies raises price target for Meta as staff reductions implemented
Jefferies analysts have raised their price target for Meta Platforms Inc (NASDAQ: META) following the company’s second round of layoffs in under six months. The analysts joined over 24 of their peers in raising the price target, setting it at $250 per share, up from $225.
The analysts suggested that the recent layoffs would drive cost cuts and that the company’s recent share buybacks would increase earnings per share. Additionally, they noted that moderation in Meta’s capital expenditures would result in higher free cash flow conversion.
The Jefferies analysts expect the company’s investment in artificial intelligence to result in higher engagement and easier comparables, which should lead to accelerating revenue growth in the second half. Meta’s shares were slightly down in premarket US trading on Wednesday.