Snap analyst day an opportunity to reset targets, says BofA

Ahead of Snap (SNAP) hosting its 2023 analyst day on February 16, BofA analyst Justin Post previewed the event as an opportunity to reset financial targets. Given healthy international user growth, the firm expects Snap to highlight positive international user trends and strong under-35 reach for advertisers and given usage concerns it would also expect a focus on product initiatives. BofA would expect Snap to update on recent senior sales hires and outline a strategy shift to Direct Response advertising in light of sales management turnover and dislocations caused by Apple’s (AAPL) IDFA changes and the firm also expects an update on costs savings progress given significant layoffs and other recent revenue and cost dislocations. Ahead of the event, BofA keeps a Neutral rating and $11 price target on Snap shares.