UPDATE: Deutsche Bank Downgrades Snap Inc (SNAP) to Hold
Deutsche Bank analyst Benjamin Black downgraded Snap Inc (NYSE: SNAP) from Buy to Hold with a price target of $14.00 (from $25.00).
The analyst comments "Snap missed revenue estimates in the 2Q, and pointed to flat y/y growth QTD. In addition, we found incremental concerns that temper our enthusiasm around the company's near to mid-term growth prospects and we are therefore downgrading SNAP to hold. Our concerns are as follows: 1. As the overall demand environment slows, SNAP's ability to grow has contracted as incremental (and experimental) budgets have decreased. Perhaps more concerning, the company highlighted increased competition for advertising dollars, and we think SNAP may have been displaced by TikTok as the experimental platform of choice (which has become the 3rd platform behind META and GOOGL) and is now less able to garner outsized share of these incremental spending budgets as demand trends normalize."
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 $16.35 yesterday.