Snap Inc. (SNAP) Surges 7% as Analyst Doubles PT, Turns Bullish

Snap Inc. (NYSE:SNAP) is one of the 10 Stocks Racking Up Monster Gains.

Snap rallied by 7.26 percent on Monday to close at $6.06 apiece, after an investment firm doubled its price target and turned bullish for its stock ahead of the first quarter earnings outcome.

In a market note, Rothschild upgraded Snap Inc. (NYSE:SNAP) to “buy” from “neutral” previously, while doubling its price target to $10 from $5 prior. The price marked a 65 percent upside potential from its latest closing price.

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The coverage reflected its optimism for the technology firm’s diversified revenues and cost management efforts, adding that it expects the latter to have already reached breakeven in 2025 and be on the path to profitability in fiscal year 2026.

By 2028, Rothschild projects Snap Inc. (NYSE:SNAP) to grow at a compounded annual growth rate (CAGR) of 11 percent, driven by a 7 percent CAGR in advertising and a sharp increase in subscription revenues, to $1.755 billion in 2028 from $745 million in 2025.

Subscription revenues are projected to grow to 22 percent from 13 percent of total revenues, while gross margins are pegged at 63 percent in 2028 versus 55 percent in 2025.

In other developments, Snap Inc. (NYSE:SNAP) is set to announce the results of its earnings performance for the first quarter after market close on Wednesday, May 6. A conference call will be held to elaborate on the results.

For the period, it is targeting to grow its revenues by 12 percent to $1.529 billion from the $1.363 billion in the same period last year. Adjusted EBITDA is expected at $233 million, or a 116 percent jump from the $108 million year-on-year.

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