Bank of America Securities analyst Justin Post has reiterated their neutral stance on SNAP stock, giving a Hold rating yesterday.
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Justin Post has given his Hold rating due to a combination of factors, including solid subscription momentum but ongoing weaknesses in Snap’s core ad and user metrics. While Snapchat+ subscriptions are expanding rapidly and management is guiding to in-line revenue and EBITDA for the next quarter, ad revenue growth is lagging peers, and daily active users are underperforming in the key U.S. and European markets.
Post modestly lifts his longer-term revenue and EBITDA forecasts, reflecting better subscription trends and a leaner cost base that should support stronger margins over time. However, he also trims the valuation multiple to account for continued ad market share losses and sees several overhangs, such as a widening performance gap versus larger platforms, regulatory uncertainty around under-18 usage, and risks tied to the upcoming Specs launch, leaving him comfortable maintaining a Neutral stance and an unchanged $8 price target.
According to TipRanks, Post is a 5-star analyst with an average return of 22.6% and a 64.11% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.