Snap, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Hold rating on the stock and has a $9.00 price target.
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John Blackledge’s rating is based on a combination of factors that reflect Snap’s current financial performance and future outlook. Snap’s second-quarter revenue growth was slightly below expectations, primarily due to a slowdown in Direct Response advertising revenue and ongoing softness in Brand spending. This deceleration was partly attributed to temporary issues with the ad platform that affected auction pricing, as well as timing factors like Ramadan.
Despite some positive developments, such as the increase in Snapchat+ subscribers and overall impressions, the company’s EBITDA was significantly below consensus estimates, indicating challenges in profitability. The guidance for the third quarter suggests modest advertising revenue growth, which is constrained by pricing pressures and increased ad supply. Consequently, Blackledge has adjusted the price target to $9 and maintained a Hold rating, reflecting a cautious stance amid these mixed signals.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 96 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.