To reflect a more cautious view on Snap's ability to scale its ad business, a softer outlook for Spectacles, and slower daily active user growth in outer years, JPMorgan analyst Doug Anmuth lowered his price target for the shares to $18 from $20.
Snap closed Friday down 25c to $21.09. While engagement is strong with 166M users creating 3B daily Snaps, it remains "very early for the business side of Snap," Anmuth tells investors in a research note. He sees "significant work" for the company to scale its ad platform. The analyst trimmed his Q2 daily active user net adds estimate to 8M from 10M and views the Q3 consensus revenue estimate of $287M as likely too high. Anmuth keeps a Neutral rating on Snap shares.
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