Snap named ‘positive tactical trade idea’ at Roth Capital

Roth Capital named Snap (SNAP) a “positive tactical trade idea” after an activist investor published a letter indicating the shares can be an AI winner through improved operating efficiency and monetization. The letter outlined six steps to 7-times the share price to $26, the analyst tells investors in a research note. Roth thinks Snap “has a team together to execute its plan of pursuing profitable growth in 2027.” It views the company’s “increasingly diversified” revenue base across advertising, subscriptions, and hardware as a positive development. When combined with the likelihood of a management response to the activist letter, the stock has a “more catalyst-rich setup ahead,” contends the firm. Roth sees a potential revival of the Perplexity partnership and possible launch of AI glasses as catalysts for the stock. It has a Buy rating on Snap with a $7 price target The stock closed Tuesday up 14% to $4.60.