Stifel lowered Snap's rating to Sell and reduced the price target to $6.50 from $8. Recent advertising checks indicate Q3 growth trends improved versus Q2, with September as the strongest month. Tougher year-over-year comparisons and ongoing tariff and macroeconomic uncertainty are expected to keep Q4 guidance muted across coverage despite a generally supportive digital advertising environment. For Snap specifically, advertising checks have become progressively more negative, and downside risk is increasing. The downgrade reflects growing concern about Snap's near-term advertising momentum and the potential for weaker-than-expected guidance.
"Commentary from the firm's recent advertising checks suggest Q3 growth trends generally improved vs. Q2, with September the strong point during the quarter, though tougher comps and continued tariff / macro uncertainty likely means Q4 guidance across the firm's coverage won't offer much to get excited about despite a generally supportive digital ads environment, the analyst tells investors in a research note. Stifel adds that for Snap, checks continue to grow more negative over time and risk skews increasingly to the downside."
"Stifel downgraded (SNAP) to Sell from Hold with a price target of $6.50, down from $8, as part of a broader research note previewing Q3 results in Digital Ads."
Read at TipRanks Financial
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