Meta Platforms upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc analyst Justin Patterson upgraded Meta Platforms to Overweight from Sector Weight with a $240 price target. The analyst believes the advertising market us settling "on more stable footing," which shifts the firm’s preference back towards Meta. With its latest reductions, Meta’s 2023 operating expense guidance has been reduced by 10%, the analyst tells investors in a research note. When coupled with CPMs showing signs of improvement, KeyBanc believes the company’s operating margins should get to at least 31% by 2024. As a result, it projects Meta will report earnings per share of $10.57 and $13.39 for 2023 and 2024, respectively, 6% and 9% above consensus.