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Investing.com - Stifel has reiterated its Hold rating and $8.00 price target on Snap Inc (NYSE:SNAP) following the company’s mixed second-quarter results. According to InvestingPro data, analyst targets range from $7 to $15, with the stock currently trading at $9.39. InvestingPro analysis suggests the stock may be undervalued at current levels.
Snap reported revenue approximately in line with expectations, despite not providing guidance for the quarter. The company, which maintains a strong liquidity position with a current ratio of 4.3, faced several headwinds, including Ramadan, de minimis exception expiry, and issues with a new auction dynamic that significantly reduced pricing. InvestingPro subscribers can access 6 additional key tips about SNAP’s financial health and growth prospects.
The challenges improved slightly throughout the quarter, with April showing the lowest growth at 1% year-over-year, while June and July trends reached 3-4% year-over-year growth for the advertising business.
Snapchat+, the company’s subscription service, emerged as the main growth driver, reaching approximately $700 million in annual run-rate, representing 64% year-over-year growth.
Management expressed optimism about demand for newer ad formats, including Sponsored Snaps, though Stifel notes this is likely more of a 2026 development rather than an immediate catalyst.
In other recent news, Snap Inc has seen a series of changes in analyst ratings and price targets following its second-quarter earnings report. Wells Fargo (NYSE:WFC) lowered its price target for Snap to $7.00 from $11.00, citing weaker-than-expected second-quarter trends and guidance for the third quarter. UBS also adjusted its price target to $9.00 from $10.00, expressing concerns about advertising revenue growth. In contrast, Evercore ISI raised Snap’s price target to $12.00 from $11.00, based on a valuation framework despite the "surprisingly soft" quarterly results. Raymond (NSE:RYMD) James maintained its Outperform rating with a $10.00 price target, acknowledging revenue misses due to "unexpected ad platform execution issues." Meanwhile, Goldman Sachs increased its price target to $9.00 from $8.50 after noting volatile revenues in the second quarter and a cautiously optimistic outlook for the third quarter. These developments highlight varied analyst perspectives on Snap’s financial performance and future prospects.
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