Jefferies trims Meta price target, says ‘buy the Zuck shopping cart dip’

Jefferies analyst Brent Thill lowered the firm’s price target on Meta Platforms to $540 from $585 and keeps a Buy rating on the shares, noting that Q1 revenue growth accelerated to 27% year-over-year from 22% in the prior quarter and saying that “expense discipline was on full display” with an 8% EPS beat. However, the acceleration in Q1 is likely being overshadowed by the implied Q2 revenue growth deceleration and increases in the FY24 total expense and capex outlooks. The firm believes in Meta’s “successful track record of generating meaningful returns from prior investment cycles” and views Meta as capable of $24 of EPS in FY25, advising investors to “buy the Zuck shopping cart dip.”