JPMorgan keeps $8 target on Snap amid continued challenges

JPMorgan analyst Doug Anmuth keeps an Underweight rating on Snap with an $8 price target coming out of the company’s Q4 results. Snap continues to be impacted by the broader industry pressures of a weak macro environment, platform privacy changes and increasing competition, the analyst tells investors in a research note. In addition, Snap-specific issues are also weighing on near-term revenue, notably the continued decline in engagement in Friend Stories and ad improvements that will be disruptive to advertisers, says the firm. It is also cautious on the impact of Spotlight, saying the service remains in the ad testing phase and faces significant competition from TikTok.