UPDATE: Meta Platforms Inc. (FB) PT Raised to $330 at Morgan Stanley on Better Reels Engagement
Morgan Stanley analyst Brian Nowak raised the price target on Meta Platforms Inc. (NASDAQ: FB) to $330.00 (from $325.00) after 2Q Revenue guidance was better than feared even through the headwinds of 1) a macro ad impact from the unrest in Ukraine, 2) continued iOS platform challenges, 3) slowing e-commerce growth off of elevated ’21 levels, and 4) on-going headwinds from the engagement shift toward lower-monetizing Reels
The analyst reiterated an Overweight rating, stating "We remain bullish... with FB at a 5-year trough mult and our 12 month PT having 59% upside." Focusing on Reels, he noted "FB's better than expected revenue guide even through faster Reels adoption in our view likely speaks to higher than appreciated Reels incremental IG time spent growth. We also remain confident in FB’s ability to monetize Reels over time given 1) their experience with monetizing Feed and Stories and skill-sets to help advertisers build and scale non-intrusive ad units, 2) an existing 10mn+ advertiser base, and 3) leading first party data sets, ad tech and targeting tools."