05:05 AM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We adjust our 12-month target to $540 from $580, on a lower revised P/E of 24x our 2025 EPS view, near META's long-term historical forward range. We keep our 2024 EPS view at $20.07 but lower 2025 to $22.45 from $23.04. META posted better-than-expected Q1 results/roughly in line with Q2 guide (see prior note for details), but we largely blame the sour sentiment on planned opex/capex increases. Although Zuckerberg highlights AI spend will take time to become profitable, we note it is already improving user engagement (30% of Facebook posts/50% of Instagram feed are AI recommended). We think AI can unlock near-term centric growth tied to business messaging (e.g., AI agents), AI interaction ads, and monetizing Llama. Also, we do think shares are now discounting uncertainty about e-commerce trends as well as China spend from Temu/Shein, with difficult 2H comps. Valuation stands at an enticing 19x our 2025 view after hours, aided by $40B net cash and nearly $50B annual FCF (being used for buybacks; $14.6B in Q1).