Citizens JMP Reiterates Market Outperform on Meta, $825 PT

Citizens analyst Greg Miller reiterated a Market Outperform rating and $825.00 price target on Meta Platforms Inc.

(NASDAQ: META).

“With a news story that Meta (META, MO, $825 PT, Boone) might move aggressively into the Neocloud business, stocks in our space have been weak today as investors fear the entry of what would be considered to be an 800lbs gorilla into the market, in our view.

While we do not believe this to be a reality, such a move would likely be done to bridge capacity construction with usage as SpaceX (SPCX, NC) does with short-term compute leases.

Rather, we believe the “news” reinforces our belief that compute capacity is in extremely short supply, while hourly compute rental rates are higher than we would have expected.

The end result is leasing trends will likely remain robust with some of the older compute arrays generating some of the strongest ROIC in the industry.”

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