Meta Platforms Inc. (META) PT Raised to $305 at Evercore ISI 'Based on META’s reduced Totex guidance (Total Expenses)'
Evercore ISI analyst Mark Mahaney raised the price target on Meta Platforms Inc. (NASDAQ: META) to $305.00 (from $275.00) while maintaining a Outperform rating.
The analyst comments "Based on META’s reduced Totex guidance (Total Expenses), we are raising our FY23 EBITDA by 4% to $61.9B and our FY23 GAAP EPS by 6% to $11.37. We now estimate Totex of $89B (@ the mid-point of the company’s $86- $92B guide), which implies approximately 2% Y/Y growth. No change to our FY23 Revenue estimate of $127B, which implies 9% Y/Y growth. The net model impact of this is that we now estimate 29.5% Operating Margin for FY23 or 32.6% excluding approx. $4B in restructuring costs. Accordingly, we have raised our PT from $275 to $305, which is based on 20X FY24 EPS of $15.40 and 10X FY24 EBITDA of $77.1B. These target multiples are premium to the market, but we believe our outlook for a 30%+ EPS CAGR and 20%+ EBITDA CAGR warrant them."