New Street analyst Dan Salmon downgraded Meta Platforms to Neutral from Buy with an unchanged price target of $220. The analyst now sees better opportunities for upside elsewhere in the firm’s coverage after Meta’s outperformance relative to the group. The company’s "Year of Efficiency" re-rating is likely complete and while incremental cost cuts could help boost estimates, they are unlikely to impact the multiple materially, the analyst tells investors in a research note. Despite Meta’s incremental focus on costs, the firm thinks the company’s mid to long term margin outlook "lacks visibility."
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