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On Friday, JMP analysts adjusted their expectations for Snap Inc (NYSE: NYSE:SNAP), reducing the price target from $16.00 to $14.00 while continuing to hold a Market Outperform rating on the company’s shares. The revision came as a result of lowered estimates for the social media company’s financial performance. According to InvestingPro data, seven analysts have recently revised their earnings expectations downward, with the stock currently trading at $9.17.
The analysts at JMP based the new $14.00 price target on a consistent approximately 4x multiple applied to Snap’s projected 2026 revenue of $6.8 billion, which reflects an 11% year-over-year increase. This valuation also corresponds to roughly 31 times the company’s estimated 2026 EBITDA of $819 million, suggesting a 12% margin. Current metrics from InvestingPro show strong revenue growth of 16.4% and a healthy current ratio of 3.95, indicating solid liquidity position.
The decision to adjust the price target was detailed by the analysts, who explained that the lowered target stems from revised estimates. Yet, despite the reduction, the analysts maintained their positive Market Outperform rating, indicating a belief that Snap’s stock will perform better than the broader market.
The financial metrics cited by the analysts, including the future revenue and EBITDA projections, are key factors in their valuation method. The unchanged multiple of 4 times the expected 2026 revenue underscores their consistent approach to Snap’s valuation, even as they recalibrate specific financial forecasts.
Snap Inc’s stock price will continue to be influenced by a variety of factors, including the company’s ability to meet these financial projections and the overall performance of the tech sector. The updated price target from JMP provides investors with a revised benchmark against which to measure the company’s progress in the coming years.
In other recent news, SharkNinja reported impressive fourth-quarter results, significantly surpassing analyst expectations. The company achieved earnings per share of $1.40, exceeding the consensus estimate of $0.97, while revenue reached $1.79 billion against an expected $1.39 billion. This performance reflects a 29.7% increase in net sales compared to the previous year, with growth across all product categories. Meanwhile, Snap Inc. announced a $1.5 billion issuance of senior notes, with the proceeds primarily used to repurchase outstanding convertible notes. The company also amended its revolving credit facility to extend its term and maintain a minimum liquidity of $800 million. In another development, Snap Inc. received a ’BB’ rating from Fitch, indicating a stable outlook, and a ’B+’ rating from S&P Global for its planned $700 million note issuance. These ratings reflect Snap’s strong liquidity and brand recognition, despite challenges in monetizing its user base. Additionally, Snap Inc. entered into a partnership with Later to enhance influencer marketing tools on Snapchat, aiming to streamline content planning and brand collaborations.
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