Meta Analyst Sees Higher Upside For Stock Versus Google Amid Subdued Sentiment Towards Metaverse

KeyBanc analyst Justin Patterson maintained an Overweight on Alphabet Inc GOOG GOOGL Google and cut the price target to $120 from $125.
Patterson reiterated Overweight on Meta Platforms Inc META and slashed the price target to $175 from $196.
Also Read: Meta Investor Wants Metaverse Spending Slashed, Along With Employee Jobs
Amid mounting concerns about a downturn in 2023, he observed investors were increasingly skeptical of Street revenue growth at META and GOOGL. They instead focused on capital allocation and expense discipline.
While he anticipated flattish-to-LSD EPS growth at both companies, he believed progress with cost containment initiatives could reassure investors that 10%+ revenue growth and high-teens to 20%+ EPS growth is attainable in a 2024 recovery.
Given the subdued sentiment around metaverse investments, he saw more potential upside from META.
Price Action: META shares traded higher by 6.52% at $138.18 on the last check Tuesday.