Rothschild Redburn upgraded Snap Inc. (NYSE:SNAP) from Neutral to Buy. The firm doubled its price target to $10.00 from $5.00. Revenue diversity and cost management drove the rating change.
The bank forecasts an 11% compound annual revenue growth rate between fiscal 2025 and 2028. Subscription revenue growth bolsters this outlook.
Rothschild Redburn projects gross margins will expand to 63% by fiscal 2028. The core business should reach meaningful profitability in fiscal 2026.