Key Takeaways From Credit Suisse's Re-rating Of Snap - Snap (NYSE:SNAP)

Credit Suisse analyst Stephen Ju maintained Snap Inc SNAP with an Outperform and cut the price target from $59 to $45 as he revisited 2023 estimates.
With Snap having already preannounced that it will miss the low-end of 2Q22 guidance, investor focus will primarily be on the 3Q22 outlook and incremental indications for 4Q he observed.
That said, with marketers indicating compressing visibility and classic macro headwind-driven behavior of consolidating ad budgets to the more significant destinations, he expects the share donation he called out for Snap at the time of its preannouncement to intensify.
He maintained Outperform, citing the potential for better-than-expected DAU growth with a revamped Android app released in more geographies.
The re-rating also factored in the potential for better-than-expected ad revenue on ramping product rollouts and marketer adoption.
The rating also involved monetization optionality from increased engagement from Games, Maps, and Spotlight.
Price Action: SNAP shares traded higher by 5.16% at $14.36 on the last check Monday.
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