Here's How RBC Capital Viewed Meta

RBC Capital analyst Brad Erickson reiterated Outperform on Meta Platforms Inc FB, but lowered the price target from $245 to $240 (11.3% upside).
Another round of SMB ad agency channel checks raised the conviction that FB will likely see another rocky quarter, prompting lower estimates and PT to $240.
The beneficiaries from FB erosion appear largely unchanged: Alphabet Inc GOOG GOOGL, Tiktok, Influencers, and Microsoft Corp MSFT LinkedIn.
Digital ad spending decisions remain in flux, with many SMBs considering new channels away from FB for the first time.
Erickson detected no perceived improvement to FB's targeting algo or performance.
Erickson saw some reversion at some point given FB's audience size and relative scaled conversion advantage (which kept it at Outperform) but saw that narrative as unlikely to materialize near-term.
Price Action: FB shares traded higher by 0.91% at $216.06 on the last check Wednesday.