In a report released today, John Blackledge from TD Cowen maintained a Hold rating on Snap, with a price target of $10.00.
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John Blackledge has given his Hold rating due to a combination of factors influencing Snap’s current market position. Although Snap’s revenue growth is projected to be 12.4% year-over-year, which is above consensus expectations, the company is facing challenges with soft brand advertising revenue. This softness is partially offset by the strength in Direct Response advertising and the growth of Snapchat+ subscriptions.
Additionally, while Snap’s shares have increased by 5% since the first quarter earnings report, they have lagged behind the S&P’s 13% rise due to the absence of second-quarter guidance and concerns over tariffs that did not materialize. The company’s focus on improving engagement through enhanced machine learning models and creator tools is promising, but the ongoing weak demand in brand advertising presents a headwind. Consequently, despite some positive indicators, these mixed factors contribute to the Hold rating.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 13.6% and a 59.88% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Netflix, Alphabet Class C, and Meta Platforms.
In another report released on July 11, Piper Sandler also maintained a Hold rating on the stock with a $10.00 price target.