- The shares of Snap Inc (NYSE: SNAP) have received a $59 price target from Credit Suisse. These are the details.
The shares of Snap Inc (NYSE: SNAP) have received a $59 price target from Credit Suisse. And Credit Suisse analyst Stephen Ju reiterated an “Outperform” rating on the shares.
Ju adjusted the rating after the company management filed an 8-K preannouncing a miss even before the final month of the second quarter. And key to the announcement was the lack of guard rails speaking to the open-ended nature of the downside risk to estimates and lack of visibility into the second half of 2022.
“Our thoughts turn instead to the potential read-throughs to the rest of the online advertising sector – while Snap is suggesting broad-based softness across all regions and verticals, there are a few factors worth calling out as it has: 1) minimal exposure to travel as consumer dollars flow from gross merchandise value/things to gross travel bookings/experiences, 2) higher exposure to weaker categories – entertainment, commerce, CPG, tech, and telco but the financials vertical is likely an incremental headwind (particularly crypto) – which grew 50% in 1Q22 and is a 3) likely victim of flight to larger platforms – given the uncertain macro/geopolitical environment and with only ~2% share of total ad budgets,” wrote Ju in a research note.
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