Analysts Lift Snap Price Target to $10 as Subscription Revenue Tops $1 Billion
Redburn raised Snap’s price target to $10 from $5 and upgraded to Buy, highlighting its subscription arm’s $1 billion annualized revenue and forecasting a shift from a $553 million operating loss in fiscal 2025 to a $29 million profit by 2027. KeyBanc also upgraded to Overweight after shares surged 6.6%.
1. Redburn Upgrades Snap to Buy
Redburn analysts Joseph Barker and James Cordwell upgraded Snap to Buy and doubled the price target to $10, citing an AI-driven bifurcation in online advertising. They argue smaller platforms must pivot toward alternative monetization and cost discipline, with Snap best positioned due to high user loyalty and identity-driven assets.
2. Subscription Revenue Accelerates Growth
Snap’s subscription business has reached an annualized revenue run rate exceeding $1 billion. Redburn projects the core advertising unit to swing from a $553 million operating loss in fiscal 2025 to a $29 million operating profit by fiscal 2027.
3. KeyBanc Assigns Overweight Rating
KeyBanc upgraded Snap to Overweight as shares jumped 6.6% on the back of restructuring efforts, including job cuts and executive changes. The firm highlighted the company’s $10.17 billion market capitalization and positive analyst sentiment around its drive toward profitability.