Meta price target cut at BofA as Russian invasion will have 'modest impact' on sales
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Meta Platforms (NASDAQ:FB) dipped slightly in premarket trading as Bank of America cut its price target, noting that Russia's invasion of Ukraine is going to have a "modest impact" on advertising sales.
Analyst Justin Post lowered the price target to $290, down from $330, but reiterated the firm's buy rating, as Meta's advertising had 1.5% exposure to Russian advertisers and the Mark Zuckerberg-led company is seeing "softness" in Western Europe as a result of Russia's invasion of Ukraine.
"While the Russian impact was likely expected by the Street, the European market remains volatile and has added risk," Post wrote in a note to clients. 
Meta (FB) shares rose nearly 1% to $189.20 in late-day trading on Monday.
Post lowered his first-quarter revenue estimate by 1.5% and 3% for the full-year, with the caveat that the length of the conflict being a driver, so the impact to revenues is fluid.
"We think, given Facebookâs history, the company will adjust spending to reflect top-line headwinds, and are cutting our expense [estimate] to $89 [billion], below FBâs guide at $90-95 [billion]," Post explained.
Meta (FB) recently started cutting back expenses, including changing food times and having its employees do their own laundry, which has raised some ire among its workforce.
In addition, Post said Meta (FB) has several positive levers going for it, as its Reels strategy appears to be adding to Instagram usage and may add to Facebook usage as well. The company has dealt with headwinds related to Apple's (NASDAQ:AAPL) Identifier for Advertisers, but those headwinds are likely to abate in the fall.
Meta (FB) also has a much lower valuation than it did in the past, trading at 12 times 2022 earnings and management tone has shifted from negative on the fourth-quarter earnings call to "more optimistic."
Last week, Russia said it was restricting access to Meta Platforms' (FB) Instagram in the country amid its invasion of Ukraine, a decision which went into effect on Monday.