Why Snap Analysts Are Mixed On The Social Media Stock After Q4 Earnings, 58% Rally

After the release of the company’s fourth-quarter results last Thursday with strong guidance for the upcoming quarter, Snap Inc.'s (SNAP) stock soared. Shares finished the week at $38.91, up by 58.82% at the Friday close. Let’s examine the updated perspectives and sentiments of various sell-side firms below.

Rosenblatt Reiterates Buy Rating, Lowers Price Target From $85 To $50

The analyst remains positive on “iOS impact on direct response better-than-feared” with Snap “recovering more quickly while Meta’s recuperation looks slated for 2H22E.” The analyst highlights the gross margin leverage driven by efficient scaling of cloud infrastructure to accelerate investment.

Credit Suisse Maintains Outperform Rating, Raises Price Target From $81 To $93

The analyst highlights that “advertisers accounting for 75% of direct response revenue have now adopted Advanced Conversions,” with positive tailwinds already “showing up in the Q1 22 guidance.” The analyst also notes 31% year-over-year revenue growth, with “the path back to ~50%+ remains an optionality.”

KeyBanc Reiterates Overweight Rating, Raises Price Target From $36 To $45

The analyst believes “+26% and +39% year-over-year revenue growth is achievable in 2022E and 2023E, respectively,” with this quarter achieving the milestone of “first quarter of GAAP profitability.” The analyst sees growing competition but remains positive on daily active user (DAU) growth.

Raymond James Maintains Market Perform Rating

The analyst remains positive on “strong revenue performance and ability to navigate iOS headwinds,” but warns that “brand business remains impacted by macro headwinds.” The analyst also sees “solid trends in overall content viewership and time spent,” but notes that “user-generated Stories continue to slow and have not returned to pre-COVID-19 levels.”