Meta Platforms Stock Selloff ‘Feels Overdone’ – Analyst
2022.04.22 16:20
Meta Platforms (FB) Stock Selloff ‘Feels Overdone’ – Analyst
BMO analyst Daniel Salmon reiterated a Market Perform rating on Meta Platforms (NASDAQ:FB) although he sees a material for a move to Outperform.
The analyst notes that the downgrade call from March “was of the tactical variety,” as he still believes that FB remains a vital online advertising destination.
However, “the potential for continued sequential daily active-user declines brings the possibility of further multiple contraction into play,” which makes Salmon stay at MP.
“We think investors should look for stability there before forming a longer-term thesis,” the analyst added in a client note.
Salmon adds that the near-term visibility remains low.
On the valuation front, Salmon says that 7.0x 2023E EV/EBITDA and 13.1x 2023E P/E are “largely in line with its two-year historical average multiples.” At these levels, it feels that FB stock selloff “feels overdone,” the analyst concluded.
Salmon lowered the price target to $225.00 per share from $290.00.
By Senad Karaahmetovic
