08:10 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $16 from $15 on a P/S of 4.4x our 2025 view, below historical to reflect limited profitability. We raise our 2024 EPS view to $0.23 from $0.13 and 2025's to $0.35 from $0.33. SNAP posted Q1 EPS of $0.03 vs. $0.01, beating the $0.05 consensus loss view. Sales rose 21%, above consensus, as DAUs grew 10% (NA flat, Europe +7%, ROW +17%) while ARPU grew an impressive 10% (NA +16%, Europe +16%, ROW +14%). We note that ARPU rose for the first time in seven quarters. Adjusted EBITDA expanded to 4% from 0.01%, aided by prior cost-cutting efforts partly offset by higher infrastructure costs. We see improving FCF/EBITDA as infrastructure costs stabilize and SNAP benefits from greater scale. We positively view Snapchat+ subscribers of over 9M, tripling over the last year, while we expect sizable AI investments to yield incremental growth ahead. Q2 sales guide of 15%-18% growth shows modest deceleration from Q1 but is above consensus, as direct response and brand advertising trends improve.