Here's Why Analysts See Sharp Upside In Snap Ahead Of Its Results

Analysts see compelling upside in Snap Inc SNAP ahead of its quarterly results.

• Credit Suisse analyst Stephen Ju lowered the price target on Snap to $81 from $104 (151% upside) ahead of quarterly results and to reflect lingering measurement headwinds. 
• The analyst reiterated an Outperform rating on the shares. Potential for better-than-expected DAU growth with a revamped Android app released in more geographies, potential for better-than-expected ad revenue on ramping product rollouts and marketer adoption, and monetization optionality from increased engagement from Games, Maps, and Spotlight drove the rating.
• Jefferies analyst Brent Thill lowered the price target on Snap to $55 from $65 (70.8% upside) and reiterated a Buy rating on the shares. 
• While his intra-quarter checks were "mixed," he believes Q4 guidance of about 30% year-over-year revenue growth was conservative and reflected many of these factors, said Thill. 
• In addition, his third-party data checks showed DAUs trending above the Street view, providing further indication that Snap and TikTok can grow in tandem.
• Stifel analyst Mark Kelley resumed coverage of Snap with a Buy rating and $45 price target (39.7% upside).
• The analyst states that he is encouraged by the resiliency of the platform's user base throughout the pandemic, along with the company's pipeline of under-monetized and yet-to-be-monetized products. 
• Kelley adds that he sees "significant upside" to his estimate for Snap.
• Price Action: SNAP shares traded lower by 0.98% at $32.22 on the last check Tuesday.