Deep Dive Into Snap Stock: Analyst Perspectives (18 Ratings)

Throughout the last three months, 18 analysts have evaluated Snap SNAP, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $14.09, a high estimate of $17.00, and a low estimate of $9.00. This current average reflects an increase of 7.39% from the previous average price target of $13.12.

Exploring Analyst Ratings: An In-Depth Overview

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.

Capture valuable insights into Snap's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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.

Snap's Financial Performance

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: Snap's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 15.48%. This indicates a substantial increase in the company's 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -11.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Snap's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -7.17%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Snap's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.04%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Snap's debt-to-equity ratio surpasses industry norms, standing at 1.92. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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