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Demystifying Snap: Insights From 13 Analyst Reviews

Throughout the last three months, 13 analysts have evaluated Snap (NYSE:SNAP), offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 1 12 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 3 0 0
2M Ago 0 0 1 0 0
3M Ago 0 1 7 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $9.85, a high estimate of $13.00, and a low estimate of $8.50. Marking an increase of 8.36%, the current average surpasses the previous average price target of $9.09.

price target chart

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Snap. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Rohit Kulkarni Roth Capital Raises Neutral $10.00 $9.00
Lloyd Walmsley UBS Lowers Neutral $9.00 $10.00
Eric Sheridan Goldman Sachs Lowers Neutral $8.50 $9.50
Brian Nowak Morgan Stanley Raises Equal-Weight $9.50 $8.50
Michael Morris Guggenheim Lowers Neutral $8.50 $9.00
Ronald Josey Citigroup Raises Neutral $10.00 $8.50
Youssef Squali Truist Securities Raises Hold $11.00 $10.00
Lloyd Walmsley UBS Raises Neutral $10.00 $9.00
Ken Gawrelski Wells Fargo Raises Equal-Weight $10.00 $8.00
Thomas Champion Piper Sandler Raises Neutral $10.00 $9.00
Deepak Mathivanan Cantor Fitzgerald Raises Neutral $9.00 $7.00
Brian Pitz BMO Capital Raises Outperform $13.00 $12.00
Barton Crockett Rosenblatt Raises Neutral $9.50 $8.70

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Snap. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Snap compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Snap's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Snap's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Snap analyst ratings.

Delving into Snap's Background

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.

A Deep Dive into Snap's Financials

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.

Revenue Growth: Over the 3M period, Snap showcased positive performance, achieving a revenue growth rate of 9.78% as of 30 September, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Snap's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -6.87%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Snap's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -4.82%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Snap's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.38%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Snap's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.86, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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