Jefferies Maintains Meta $825 Price Target, Calls AI Capex Overblown on July 8

META4.68%
According to Jefferies senior analyst Brent Thill, the investment bank issued a research report on July 8 maintaining a $825 price target for Meta Platforms (META-US), implying approximately 41% upside from current levels. Brent Thill argued that market concerns over Meta's potential slowdown in capital expenditure are overblown, and that the company's sale of idle AI computing capacity represents an efficiency optimization and expansion of cloud services, not overcapacity. The analyst highlighted that Meta's AI infrastructure utilization rate stands at approximately 65%, providing flexibility for new business development. Jefferies projects Meta's earnings per share could reach $35, with the stock trading at an attractive 18x forward P/E multiple compared to other large-cap tech peers.
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