In a report released yesterday, Justin Post from Bank of America Securities reiterated a Hold rating on Snap (SNAP – Research Report), with a price target of $10.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Justin Post has given his Hold rating due to a combination of factors including Snap’s recent financial performance and ongoing macroeconomic uncertainties. While Snap reported better-than-expected revenue and EBITDA for the first quarter, the decline in U.S. users and the lack of guidance for the second quarter due to macroeconomic challenges have raised concerns. The company is facing headwinds such as changes in advertiser spending, which could impact future revenue growth.
Additionally, Post has adjusted his estimates downward, reflecting a decrease in user numbers and average revenue per user. Despite the stock’s valuation nearing historical lows, concerns about user saturation in key markets, high stock-based compensation, and projected GAAP losses through 2027 contribute to the cautious outlook. These factors, combined with Snap’s vulnerability to macroeconomic pressures compared to its peers, justify the Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNAP in relation to earlier this year.