Meta Platforms price target lowered to $535 from $550 at Truist

Truist lowered the firm’s price target on Meta Platforms to $535 from $550 but keeps a Buy rating on the shares. The firm remains constructive on the stock after its better than expected Q1 results that reflected accelerating growth in the ads business, higher user engagement, and success with Reels and Messaging ads, the analyst tells investors in a research note. While the softer Q2 guide are driven by tougher Y/Y comps and the management’s decision to double down on the AI opportunity ahead, Meta is already seeing green shoots from AI innovation in its ads business, with better recommendation and ranking algos driving higher conversion and pricing, the firm added.