Analysts had mixed opinions on Snap Inc (NYSE:SNAP) post Q4 results. However, they continue to see a sharp upside. The company last night reported a Q4 print with revenue up 43% year-over-year, beating the Street by 9%.
Piper Sandler analyst Thomas Champion lowered the price target on Snap to $53 from $72 (116.3% upside) and reiterated an Overweight.
Revenue growth fears were "quelled" following a weaker quarter from Meta Planforms Inc (NASDAQ: FB), but Apple Inc's (NASDAQ: AAPL) Identifier for Advertisers remains a near-term challenge. However, he views Snap's user growth and engagement as solid in a challenging operating environment.
Credit Suisse analyst Stephen Ju raised the price target on Snap to $93 from $81 (279.5% upside) and kept an Outperform. The biggest takeaway from the Q4 report was that advertisers accounting for 75% of direct response revenue have now adopted Advanced Conversions.
Snap continues to play offense with increased R&D, and ongoing salesforce hires, which offsets some of the CORPU gains, which drove gross margin to a historical high of 65%.
KeyBanc analyst Justin Patterson raised the price target to $45 from $36 (83.7% upside) and kept an Overweight. Snap's results were better than feared, as the company is navigating iOS platform headwinds and achieving solid revenue growth.
The analyst thinks 26% and 39% y/y revenue growth is achievable in 2022 and 2023, respectively, with modest improvements in profitability.
RBC Capital analyst Brad Erickson downgraded Snap to Sector Perform from Outperform and cut the price target to $40 from $54 (63.3% upside) as it lacks confidence in content strategy.
JMP Securities analyst Ronald Josey lowered Snap's price target to $65 from $82 (165.3% upside) and kept a Market Outperform rating.
BofA analyst Justin Post upgraded Snap to Buy from Neutral with a price target of $55 (124.5% upside).
Price Action: SNAP shares traded higher by 43.7% at $35.20 in the premarket session on the last check Friday.
