A leaner Meta Platforms Inc. is impressing Wall Street, with analysts turning more bullish as cost cuts coupled with stabilizing advertising trends make the Facebook owner’s stock look more durable in a looming economic slowdown.
The shares have surged 140% from a seven-year low in November as Meta started cutting thousands of jobs in light of falling sales. The company announced further layoffs last month and pledged to be more efficient, adding kindling to the rally.
More than two dozen brokerages have increased their price targets on the stock since the second round of job cuts was announced. Analysts also have pushed up Meta’s 2023 earnings per share estimate by 15% over the past three months, according to data compiled by Bloomberg. Morgan Stanley’s Brian Nowak in March restored his buy-equivalent rating after sitting on the sidelines for less than five months.
