UBS has reiterated its Buy rating on Meta Platforms Inc (NASDAQ:META) with a $300 price target. Analysts reviewed the company’s Reels opportunity, noting that the revenue headwinds have been more moderate than expected. They expect Reels to have a $5 billion revenue runrate exiting FY 2023 and also see it getting to revenue neutrality. UBS believes that Overlay ads will allow higher ad load on Reels with limited disruption to the user experience, resulting in a total benefit of 18%. They concluded by reiterating their Buy rating on Meta shares, with a compelling +53% / (36%) upside/downside skew.
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