Snap price target raised to $16 from $11 at Credit Suisse

Credit Suisse analyst Stephen Ju raised the firm’s price target on Snap to $16 from $11 and keeps an Outperform rating on the shares ahead of quarterly results. As the release of new and/or updated ad products generally requires a period of adjustment for marketers to test and learn, the most realistic timeline for revenue growth recovery in the firm’s view was always for the second half of 2023. That said, with frozen ad budgets beginning to thaw, Credit Suisse believes the operating environment is improving for Snap to recapture some of the lost share, particularly as it recently launched ads within Spotlight – it currently reaches 40% of the last-disclosed 750M MAUs and offers the optionality to raise the currently – high ad load ceiling that much higher.