Snap Inc (SNAP) PT Lowered to $14 at Evercore ISI

Evercore ISI analyst Mark Mahaney lowered the price target on Snap Inc (NYSE: SNAP) to $14.00 (from $15.00) while maintaining a In Line rating.

The analyst comments "Our View: Following up from our ‘25 Net outlook report (here) where we highlighted SNAP as having one of the toughest Q1:25 comps across our Net coverage, we are lowering our FY25 Revenue and EBITDA estimates for Snap by 4%, and we are lowering our PT to $14 (from $15). Based on model sensitivity analysis and intra quarter datapoints, we view the Street’s Q1 Revenue estimate of $1,341MM (+12% Y/Y growth) as slightly risky, implying a 2pt decel on a 16pt tougher comp or -14% Q/Q (vs. historical Q1 Q/Q seasonality of -24% to -16% ex Q1:24) as the Street current ests imply closer historical seasonally to Q1:24, which declined -12% Q/Q partially driven by roughly ~2pts of one-time benefits related to i) ~1pt of benefit from Leap Day and ii) ~1pt of benefit from Easter occurring in Q1 (vs. typically a Q2 holiday). Per mgmt, in Q1:24 roughly ~50% of the 5pts of Revenue outperformance above the high-end of the Q1:24 guide was driven by 1x benefits. That said, we view the Street’s Q1 EBITDA estimate of $80MM, implying 6% margin (~24% incremental margins) as achievable, even plausibly beatable given mgmt.’s commentary at running the business between roughly 30%-50% incremental margins, balancing profitability and growth."

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