Analyst Youssef Squali of Truist Financial maintained a Hold rating on Snap, with a price target of $11.00.
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Youssef Squali has given his Hold rating due to a combination of factors influencing Snap’s current financial and market position. The company’s third-quarter results and fourth-quarter outlook indicate strong performance in terms of adjusted EBITDA, reflecting effective cost management, particularly in North America and Europe. However, despite these positive aspects, Snap’s user growth remains sluggish, which may hinder future revenue expansion.
Additionally, while Snap is making strategic investments in user products that enhance engagement, challenges related to monetization, regulation, and safety are expected to impact user growth in the upcoming quarter. Although new revenue streams like the Perplexity deal are anticipated to improve margins in the future, Snap’s projected sales growth of approximately 9% suggests it continues to lose market share to competitors such as Meta, Google, and Reddit. Consequently, Squali has adjusted the price target to $11 for FY26, maintaining a cautious stance on Snap’s stock performance.
In another report released today, Cantor Fitzgerald also maintained a Hold rating on the stock with a $9.00 price target.