Critical Insights From Snap Analyst Ratings: What You Need To Know

Snap SNAP underwent analysis by 19 analysts in the last quarter, revealing a spectrum of viewpoints 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.

In the assessment of 12-month price targets, analysts unveil insights for Snap, presenting an average target of $12.26, a high estimate of $17.00, and a low estimate of $8.00. Highlighting a 13.96% decrease, the current average has fallen from the previous average price target of $14.25.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Snap among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Snap. This information offers a snapshot of how analysts perceive 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: Understanding forecasts, analysts offer estimates for Snap's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Snap's market position. Stay informed and make well-judged 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.

Unraveling the Financial Story of Snap

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Snap's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 15.84% as of 30 June, 2024, 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -20.1%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -11.84%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Snap's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -3.41%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Snap's debt-to-equity ratio stands notably higher than the industry average, reaching 2.05. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

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 publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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