John Blackledge, an analyst from TD Cowen, maintained the Hold rating on Snap (SNAP – Research Report). The associated price target was lowered to $10.00.
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John Blackledge has given his Hold rating due to a combination of factors impacting Snap’s financial outlook. The primary concern is the challenging macroeconomic environment, which has led to a downgrade in revenue and EBITDA estimates for the coming years. This is reflected in the lowered price target from $12 to $10. Despite solid growth in Snap’s Direct Response advertising business, broader economic indicators such as weakening consumer sentiment and potential recession fears are creating headwinds.
Additionally, while there is momentum in certain areas like Snap+, which is expected to capture a significant portion of incremental revenue growth, the overall advertising revenue is under pressure. Brand advertising, which makes up a substantial portion of Snap’s ad revenue, is particularly vulnerable in the current economic climate. These factors combined have led to a cautious outlook, resulting in the Hold rating.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 9.2% and a 50.52% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Meta Platforms, and Pinterest.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $10.50 price target.