Analyst Maria Ripps of Canaccord Genuity maintained a Hold rating on Snap (SNAP – Research Report), with a price target of $13.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Maria Ripps’s rating is based on Snap’s recent financial performance and future outlook. In the fourth quarter, Snap managed to surpass expectations with its revenue and profitability, primarily driven by a 10% year-over-year increase in advertising revenue. The company has been actively testing new products like Simple Snapchat and new ad placements, which are showing promising early results. However, while these developments are encouraging, Snap’s path to reaccelerate ad revenue growth is still unfolding.
Despite Snap’s steady user growth and the strong initial performance of its new initiatives, the profitability guidance for the upcoming quarter fell below consensus expectations. Snap is also planning to ramp up its investments, resulting in a forecasted increase in operating expenses. Given these factors, Maria Ripps considers a Hold rating appropriate, reflecting both the positive momentum and the uncertainties that lie ahead.
According to TipRanks, Ripps is a 5-star analyst with an average return of 24.0% and a 50.15% success rate. Ripps covers the Communication Services sector, focusing on stocks such as Spotify Technology SA, Meta Platforms, and Netflix.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $14.50 price target.