Meta Platforms initiated with a Buy at DA Davidson

DA Davidson initiated coverage of Meta Platforms (META) with a Buy rating and $600 price target. The firm calls Meta a top pick within the mega-cap space, citing its “combination of emerging leadership in the most important future technology platforms and an attractive relative valuation.” Aside from Alphabet (GOOG, GOOGL), Meta is the least expensive mega cap, even before factoring for the option to sever Reality Labs losses, which would take the multiple down to 16-times, “thus providing downside protection,” the anlayst tells investors in a research note. Davidson says it will be monitoring short term challenges such as tougher comps, reliance on Chinese shlock-hawkers and the upcoming election cycle.