HSBC has adjusted its price target for Snap Inc. (SNAP, Financial), reducing it from $10.60 to $8.10 while maintaining a Hold rating on the company's shares. This revision comes as part of the firm's broader reassessment of social media and AdTech stocks, prompted by prevailing macroeconomic challenges.
In its updated analysis, HSBC anticipates slower revenue growth for companies in this sector, including Snap, in response to declining global advertising demand. Specifically, the revenue growth projections have been trimmed by 300 to 500 basis points for the fiscal year 2025 and by 200 to 300 basis points for the fiscal year 2026.
The adjustments underscore the impact of a less robust advertising market, prompting a cautious outlook for the near to medium term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 34 analysts, the average target price for Snap Inc (SNAP, Financial) is $11.46 with a high estimate of $16.00 and a low estimate of $7.40. The average target implies an upside of 45.92% from the current price of $7.85. More detailed estimate data can be found on the Snap Inc (SNAP) Forecast page.
Based on the consensus recommendation from 44 brokerage firms, Snap Inc's (SNAP, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Snap Inc (SNAP, Financial) in one year is $14.11, suggesting a upside of 79.75% from the current price of $7.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Snap Inc (SNAP) Summary page.
