Snap Inc (SNAP) PT Raised to $14 at Bernstein SocGen Group

Bernstein SocGen Group analyst Mark Shmulik raised the price target on Snap Inc (NYSE: SNAP) to $14.00 (from $12.00) while maintaining a Market Perform rating.

The analyst commented: "Below the line, where management has the most control, we’re getting color we’re not used to having. Adj EBITDA beat investor expectations and looking ahead we can see stability in gross margins, marginal growth in SBC, and a tight range of control around below the line expenses. The company continues to be savvy around stock buyback cadence, buying low and selling high, as we joke. So in the end, it all comes to what’s always mattered for Snapchat - revenue growth. Let’s see if Snapchat can stitch together several quarters of growth within their control and offer a pathway to underwriting a multi-year growth recovery story. Until then, we remain on the sidelines building out our Snap puzzle, and hoping the pieces fit. We remain Market-Perform, PT $14 (+$2). We value Snapchat using a 50/50 combination of 2025e EV/Sales multiple of 4.5x, and a DCF using a WACC of 10% and a terminal growth of 3.0%. We increased our 2025 Sales estimate from $6.3B to $6.4B and EV/Sales multiple from 3.5x to 4.5x to arrive at the target price of $14 from $12 previously."

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