Snap Inc (SNAP) PT Lowered to $7 at Wells Fargo

Wells Fargo analyst Ken Gawrelski lowered the price target on Snap Inc (NYSE: SNAP) to $7.00 (from $11.00) while maintaining a Equal Weight rating.

The analyst comments "Snap's strategically important audience stronghold in the 13-25 demo provides an option for success with the Specs mixed-reality glasses in 2026. If Snap can effectively integrate Spectacles into its core social ecosystem, could unlock new monetization paths and lead to improving platform engagement relative to the core Snap application, which is seeing engagement pressure. However, we remain cautious as better-resourced peers like Google and Meta are also investing aggressively in this space. Estimate Revisions, Price Target, Rating: Reduce FY25 & FY26 ad revenue by 3.5% & 6.5% to $5.21B & $5.62B (vs. $5.40B & $6.00B), respectively, on weaker-than-expected 2Q trends and 3Q guidance. Maintain FY25 non-GAAP OpEx at LE of guide at ~$2.65B. Revised forecasts imply $532M and $635M for FY25 / 26 adj. EBITDA (vs. prior $657M and $911M), respectively. Maintain Equal Weight and cut PT to $7 (-$4) on 20x (vs. 21.5x prior) '26 EBITDA."

You May Also Be Interested In

• Qualcomm (QCOM) PT Raised to $195 at BofA Securities
• Kroger (KR) PT Lowered to $63 at UBS as Execution Challenges Persist
• Definium Therapeutics Inc (DFTX) PT Raised to $60 at Oppenheimer