Shares of Snap Inc. (SNAP) jumped as much as 8.39% on Monday after Rothschild & Co Redburn upgraded the stock to Buy and set a new $10 price target.
The upgrade reflects growing confidence in Snap’s financial trajectory, with the firm highlighting a strengthening business, improving advertising demand, and accelerating subscription-based revenues as key drivers, according to its research note.
The revision represents a significant shift in outlook for the social media company.
| Field | Value |
|---|---|
| Analyst Firm | Rothschild & Co Redburn |
| Previous Rating | Neutral |
| New Rating | Buy |
| Previous PT | $5 |
| New PT | $10 |
| Previous Close | $5.65 |
| Implied Upside | ~77% |
Rothschild’s bullish call is centered on the belief that Snap will achieve GAAP profitability in 2025. This optimism is supported by the company's aggressive restructuring, which targets more than $500 million in annualized savings by the second half of 2026.
Despite the upgrade, broader sentiment on Wall Street remains measured. The consensus rating among 30 analysts covering Snap is a Hold, with an average price target of $8.08, according to data from MarketBeat. Prior to Monday’s upgrade, both Guggenheim and Rosenblatt reaffirmed Neutral ratings in mid-April.
The company’s path to sustained profitability remains a key focus for investors. Snap reported a fourth-quarter earnings per share of three cents, missing analyst consensus by twelve cents, though revenue of $1.72 billion slightly exceeded expectations.
The upgrade comes against a backdrop of continued stock sales by corporate insiders. Over the past three months, executives and other insiders have sold more than 2.5 million shares valued at approximately $13.3 million.
Snap has also initiated significant restructuring, including reducing its workforce by about 16%, or 1,000 jobs, as it seeks to streamline operations and control expenses.
The upgrade provides a new point of focus for investors ahead of the company's next earnings report on May 6. The market will be watching for confirmation of the cost-saving measures and continued growth in advertising and subscription revenues.
This article is for informational purposes only and does not constitute investment advice.