15 Analysts Assess Snap: What You Need To Know

15 analysts have expressed a variety of opinions on Snap SNAP over the past quarter, 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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $12.0, a high estimate of $16.00, and a low estimate of $8.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 13.04%.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Snap's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |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 | |Ken Gawrelski |Wells Fargo |Lowers |Equal-Weight | $9.00|$11.00 | |Devin Ryan |JMP Securities |Lowers |Market Outperform| $14.00|$16.00 | |Shyam Patil |Susquehanna |Raises |Neutral | $13.00|$12.00 | |Doug Anmuth |JP Morgan |Lowers |Underweight | $10.00|$11.00 | |Ronald Josey |Citigroup |Raises |Neutral | $13.50|$13.00 | |Justin Post |B of A Securities |Raises |Neutral | $14.50|$14.00 | |Ken Gawrelski |Wells Fargo |Lowers |Equal-Weight | $11.00|$15.00 | |David Turkaly |JMP Securities |Maintains |Market Outperform| $16.00|$16.00 | |Greg Miller |JMP Securities |Maintains |Market Outperform| $16.00|$16.00 | |Brian Pitz |BMO Capital |Lowers |Outperform | $16.00|$18.00 |

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 gauge the dynamics of price targets, providing estimates for the future value of Snap's stock. This comparison reveals trends in analysts' expectations over time.

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.

Discovering Snap: A Closer Look

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.

Understanding the Numbers: Snap's Finances

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Snap's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 14.4%. This signifies 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 0.58%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Snap's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.39%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Snap's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.12%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Snap's debt-to-equity ratio surpasses industry norms, standing at 1.73. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

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 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.

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