- Piper Sandler cut its price target on the Meta Platforms Inc (NASDAQ:FB), noting that its advertising headwinds are likely to continue for several months.
- Analyst Thomas Champion lowered his price target to $240 from $301, implying a 28% upside.
- Still, he reiterated Overweight, noting that Meta's "dismal" first-quarter guidance resulted from several issues, including difficult pricing comparisons, impression headwinds, and increased spending as the company transitions to a metaverse-first company.
- Champion pointed out that negatives to impressions include slowing daily active user growth, the re-opening of the global economy, and more users shifting to Reels, which currently monetize at a lower rate than the company's other products.
- Price Action: FB shares traded higher by 4.17% at $195.29 in the market on the last check Tuesday.
