Instant share price target lowered by Credit Suisse as ad budgets spin

SNAP by Snap Inc.,
+3.04%
The stock price target was cut by Credit Suisse on Monday ahead of the company’s second-quarter results on Thursday, July 21. Credit Suisse lowered its target for Snapchat’s parent company to $45 from $59 amid concerns about rotating advertising budgets and economic headwinds. On May 23, Snap said it would likely miss quarterly estimates, citing an economy that “deteriorated more and faster than expected.” The reduction in Credit Suisse’s price target echoes analyst concerns about the impact of a slowing economy on digital advertising. “With Snap having already announced that it will miss the bottom of 2Q22 guidance, investors will primarily focus on the 3Q22 outlook and additional guidance for 4Q,” wrote Credit Suisse analyst Stephen Ju. “That said, with marketers pointing to viewability compression and classic macro behavior of consolidating ad budgets to larger destinations, we expect the stock donation we called on Snap at the time. of his pre-announcement intensifies.” However, Credit Suisse maintained its outperform rating on Snap, pointing to higher-than-expected daily active user growth potential, a revamped Android app, and higher-than-expected ad revenue from product rollouts and consumer adoption. marketers. Of 41 analysts polled by FactSet, 30 have overweight or buy ratings, 10 have hold ratings and one has a sell rating. Snap shares gained 3% to $14.06 on Monday, topping the SPX of the S&P 500,
-0.24%
gain of 0.7%.

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