Snap Inc. Gains Arete Buy Upgrade with $7.30 Target; Faces Texas AG Lawsuit
Arete Research upgraded Snap from Neutral to Buy, raising its price target to $7.30 based on a shift toward higher-margin recurring subscription revenue. Texas Attorney General Ken Paxton filed a lawsuit accusing the company of deceptive practices and addictive features exposing minors to mature content.
1. Arete Research Upgrade
On February 9 Arete Research upgraded the company’s rating from Neutral to Buy and increased its price target to $7.30, citing a strategic shift in revenue mix toward higher-margin recurring subscription offerings that are expected to strengthen long-term profitability.
2. Texas AG Lawsuit
On February 11 Texas Attorney General Ken Paxton sued the company, alleging it failed to warn parents about addictive features like Snapstreaks and exposure to mature content, claiming deceptive marketing and potential harm to underage users.