Snapchat Shares Surge 7.9% After Upgrade to Buy and Price Target Doubled
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy SNAP?
Source: Yahoo Finance
- Upgrade Impact: Rothschild Redburn upgraded Snapchat's stock from Neutral to Buy and doubled its price target to $10.00, resulting in a 7.9% morning surge, reflecting increased market confidence in Snap's improving financial health.
- Advertising Growth: Analysts noted strong demand for Snap's core advertising business and growing subscription revenue, alongside effective cost management efforts, indicating a positive trajectory for future profitability.
- Optimistic Profit Expectations: The expectation for Snap to achieve GAAP profitability within the year, combined with the new price target, suggests significant upside potential for the stock, signaling a bullish outlook on the company's long-term profitability strategy.
- Market Volatility Analysis: Snap's shares have experienced 26 moves greater than 5% over the past year, and while today's increase is seen as meaningful, it does not fundamentally alter the market's perception of the business.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 5.950
Low
7.00
Averages
9.57
High
13.00
Current: 5.950
Low
7.00
Averages
9.57
High
13.00
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Advertising Growth: Analysts noted strong demand for Snap's core advertising business and growing subscription revenue, alongside effective cost management efforts, indicating a positive trajectory for future profitability.
- Optimistic Profit Expectations: The expectation for Snap to achieve GAAP profitability within the year, combined with the new price target, suggests significant upside potential for the stock, signaling a bullish outlook on the company's long-term profitability strategy.
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- EU Probe Initiated: On March 26, 2026, the European Union launched an investigation into Snap's Snapchat platform, focusing on child safety, inadequate age verification, and the promotion of illegal products, which could expose the company to legal risks.
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- Upgrade Impact: Rothschild Redburn upgraded Snapchat's stock from Neutral to Buy and doubled its price target to $10.00, resulting in a 7.9% morning surge, reflecting increased market confidence in Snap's improving financial health.
- Advertising Growth: Analysts noted strong demand for Snap's core advertising business and growing subscription revenue, alongside effective cost management efforts, indicating a positive trajectory for future profitability.
- Optimistic Profit Expectations: The expectation for Snap to achieve GAAP profitability within the year, combined with the new price target, suggests significant upside potential for the stock, signaling a bullish outlook on the company's long-term profitability strategy.
- Market Volatility Analysis: Snap's shares have experienced 26 moves greater than 5% over the past year, and while today's increase is seen as meaningful, it does not fundamentally alter the market's perception of the business.
See More
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- Geopolitical Tensions: Stalled peace negotiations between the U.S. and Iran have led to rising oil prices, raising fresh concerns about inflation and global economic growth, as investors balance strong corporate earnings against geopolitical uncertainties.
- Earnings Performance: Verizon (VZ) reported a better-than-expected Q1, while Domino's Pizza (DPZ) posted disappointing results and announced an additional $1 billion share repurchase program, highlighting the varied market reactions to different companies.
- Acquisition Activity: Shell (SHEL) agreed to acquire ARC Resources (AETUF) for C$32.80 per share, while China blocked Meta's (META) acquisition of AI startup Manus, reflecting the complexities of the global M&A landscape.
- Market Index Fluctuations: Near midday, the Dow was down 0.25%, the Nasdaq down 0.28%, and the S&P 500 down 0.14%, indicating the market's sensitive response to geopolitical tensions and economic data.
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