SunTrust Robinson analyst Youssef Squali maintained a Hold rating on Snap Inc (SNAP) yesterday and set a price target of $17. The company’s shares closed yesterday at $14.83, close to its 52-week high of $16.24.
Squali observed:
“We’re adjusting our estimates and PT to $17, showing that Snap may achieve adj. EBITDA/GAAP profitability in 2020/2022, a year faster than we originally estimated, if strong growth is sustained into 2020. 2Q19 Results Better Than Expected. Snap’s 2Q19 print came in better than expected on the top and bottom lines along with positive user trends. Further, the 3Q19 revenue guidance was well above current consensus. 2Q19 revenue and adj. EBITDA were $388M/($78.7M) versus FactSet consensus of $359.8M/ ($121.4M) and a prior guidance range of $335-360M/($150-125M). The top line beat was driven by a combination of growth in the number of active advertisers and higher spend by existing ones, which management believes should remain the primary driver in the short-to-medium term.”
According to TipRanks.com, Squali is a top 100 analyst with an average return of 26.3% and a 74.2% success rate. Squali covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, Uber Technologies Inc, and IAC/InterActiveCorp.
Currently, the analyst consensus on Snap Inc is a Moderate Buy with an average price target of $15.68, representing a 5.7% upside. In a report issued on July 11, Merrill Lynch also maintained a Hold rating on the stock.
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Based on Snap Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $310 million. In comparison, last year the company had a GAAP net loss of $353 million.
Based on the recent corporate insider activity of 134 insiders, corporate insider sentiment is negative on the stock.
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Snap, Inc. engages in the operation of its camera platform. It is also involved in the provision of advertising services by helping its partners in generating return on investments. Its products include Snapchat, publisher tools, and spectacles.
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