Susquehanna on Snap Inc (SNAP): 'Trends Improving'

Susquehanna analyst Shyam Patil reiterated a Neutral rating and $6.00 price target on Snap Inc (NYSE: SNAP).

The analyst comments "Our Thoughts. SNAP posted solid 2Q results, with trends improving across most key metrics, and guided 3Q constructively. We remain Neutral as we view the risk/reward as balanced at current levels. 2Q solid. Total revenue was $1.6b, up 19% y/y, 4% above our estimate, consensus expectations, and the midpoint of the guide. Overall advertising revenue was up 9% y/y, driven by meaningful progress with large advertisers in North America, the broader adoption of AI-powered Smart Campaigns, and continued momentum with SMBs. Other revenue was up 85%, driven by strong growth in Snapchat+ subscriptions, traction with Memories Storage Plans, and the increased adoption of Lens+. ARPU was up 13% y/y, coming in 4% above our estimate and 3% above consensus. EBITDA was well ahead of our estimate, consensus, and the midpoint of the guide, which management views as a clear demonstration of its pivot to profitability as it continues to optimize the cost structure."

For an analyst ratings summary and ratings history on Snap Inc click here. For more ratings news on Snap Inc click here.

Shares of Snap Inc closed at $5.04 yesterday.

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