What 22 Analyst Ratings Have To Say About Snap
In the latest quarter, 22 analysts provided ratings for Snap (NYSE:SNAP), showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 19 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 18 | 1 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $9.45, a high estimate of $13.00, and a low estimate of $6.50. A 20.32% drop is evident in the current average compared to the previous average price target of $11.86.
Breaking Down Analyst Ratings: A Detailed Examination
The analysis of recent analyst actions sheds light on the perception of Snap by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ken Gawrelski | Wells Fargo | Raises | Equal-Weight | $11.00 | $8.00 |
| Rob Sanderson | Loop Capital | Lowers | Buy | $12.00 | $16.00 |
| Brian Nowak | Morgan Stanley | Lowers | Equal-Weight | $6.50 | $8.00 |
| Maria Ripps | Canaccord Genuity | Lowers | Hold | $9.00 | $10.00 |
| Ronald Josey | Citigroup | Lowers | Neutral | $8.00 | $9.00 |
| Naved Khan | B. Riley Securities | Lowers | Neutral | $10.00 | $12.00 |
| Youssef Squali | Truist Securities | Lowers | Hold | $11.00 | $14.00 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $8.50 | $9.50 |
| Shyam Patil | Susquehanna | Lowers | Neutral | $8.00 | $13.00 |
| Ken Gawrelski | Wells Fargo | Lowers | Equal-Weight | $8.00 | $9.00 |
| Brad Erickson | RBC Capital | Maintains | Sector Perform | $12.00 | $12.00 |
| Brian Pitz | BMO Capital | Lowers | Outperform | $13.00 | $16.00 |
| Barton Crockett | Rosenblatt | Lowers | Neutral | $9.00 | $12.00 |
| Mark Kelley | Stifel | Lowers | Hold | $8.00 | $11.00 |
| Brian Nowak | Morgan Stanley | Lowers | Equal-Weight | $8.00 | $10.00 |
| Maria Ripps | Canaccord Genuity | Lowers | Hold | $10.00 | $13.00 |
| Ronald Josey | Citigroup | Lowers | Neutral | $9.00 | $13.50 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $9.50 | $13.50 |
| Lloyd Walmsley | UBS | Lowers | Neutral | $9.00 | $14.00 |
| Thomas Champion | Piper Sandler | Lowers | Neutral | $10.00 | $13.00 |
| Justin Post | B of A Securities | Lowers | Neutral | $10.50 | $14.50 |
| Doug Anmuth | JP Morgan | Lowers | Underweight | $8.00 | $10.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Snap. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Snap compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Snap's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Snap analyst ratings.
Unveiling the Story Behind Snap
Snap is a technology company best known for its marquis social media application Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.
Unraveling the Financial Story of Snap
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Snap's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.1% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Net Margin: Snap's net margin is impressive, surpassing industry averages. With a net margin of -10.24%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Snap's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -5.86%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Snap's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.8%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Snap's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.82, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.