What Analysts Are Saying About Snap Stock

In the latest quarter, 8 analysts provided ratings for Snap SNAP, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Snap and provided 12-month price targets. The average target is $14.39, accompanied by a high estimate of $16.00 and a low estimate of $11.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.51%.

Decoding Analyst Ratings: A Detailed Look

The standing of Snap among financial experts becomes clear with a thorough analysis 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 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Snap compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Snap's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Snap's market standing. Stay informed and make data-driven decisions with 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: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could 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 15.48% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Snap's net margin is impressive, surpassing industry averages. With a net margin of -11.16%, the company demonstrates strong profitability and effective cost management.

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 standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.04%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.92, Snap faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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