Snap (SNAP – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Hold rating on the stock and has a $9.00 price target.
John Blackledge has given his Hold rating due to a combination of factors including Snap’s recent financial performance and future outlook. The company’s first-quarter revenue showed a modest increase, driven by strong Direct Response advertising and contributions from Snapchat+, but this was partially offset by a decline in Brand revenue. Despite exceeding expectations in terms of EBITDA, Snap refrained from providing guidance for the second quarter due to macroeconomic uncertainties, such as the end of the de minimis exemption, which could impact advertising demand.
Furthermore, while Snap’s management remains optimistic about long-term growth through improvements in its ad platform and diversification of revenue sources, they have also indicated a cautious approach towards investment in the near term. The company has adjusted its cost outlook for FY25, lowering its guidance for operating expenses in response to the uncertain economic environment. These mixed signals contribute to the Hold rating, as the potential for growth is tempered by current market challenges.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 10.2% and a 53.43% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Snap, and Pinterest.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $8.50 price target.