Snap downgraded to Hold at Jefferies, Street ‘overly optimistic’ on digital ads

As previously reported, Jefferies analyst James Heaney downgraded Snap to Hold from Buy with a price target of $10, down from $12, as he took over lead coverage of the stock. In his view, the Street is "overly optimistic" on digital advertising growth in 2023 and 2024 and he sees Snap’s lack of catalysts as a "concern." He lowered his FY23 revenue estimates across his coverage by 3%-7%, bringing his forecasts 5%-10% below consensus, Heaney noted.