Roth/MKM Reiterates Neutral Rating on Snap Inc (SNAP)

Roth/MKM analyst Rohit Kulkarni reiterated a Neutral rating and $14.00 price target on Snap Inc (NYSE: SNAP).

The analyst comments "Ambac Financial emerged from Chapter 11 bankruptcy in 2013 and after a decade run, the potential for the holding company to prosper again is finally upon us. With the sale of its financial guarantee business expected to close by year-end, Ambac’s holding company will finally be able to see cash earnings within a year or two. We are raising our rating to Buy from Neutral and raising our price target to $15 from $13 based on a 17.6x multiple of 2026 EBITDA per share. Bottom Line / Stock Call: While the company has demonstrated progress in AR initiatives and exceeded expectations with user growth and engagement, we believe sentiment toward SNAP remains negative, largely due to volatile fundamentals and revenue growth below social media peers. We believe Snap is making progress in attracting SMB advertisers and growing its DR business; however, we aren't confident of mgmt's ability to consistently execute over several quarters. We'd be tactical buyers on weakness below/around $9/ share as an in-line 3Q result and bracket 4Q guide could drive shares higher. However, SNAP remains in a LT penalty box given lack of consistent execution."

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 $9.42 yesterday.

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