07:00 AM EDT, 08/07/2025 (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 keep our 12-month target price at $8, on a P/E of 17.8x our 2027 EPS estimate, which we initiate at $0.45, below historical and peers. After posting Q2 EPS/Q3 guide that largely disappointed, we adjust our 2025 EPS estimate to $0.26 from $0.31 and 2026's to $0.35 from $0.46. We walked away from the Q2 earnings call with more concerns and less clarity about the future prospects of the company. Ad revenue growth of a meager 4% in Q2 was well below that of all SNAP's digital ad peers with our coverage universe (Pinterest has yet to report but we expect far superior growth) while need to aggressively spend on its platform to keep up with larger peers will likely keep the company from generating significant EPS/FCF growth. While user growth is slowing considerably more than we previously anticipated, we are encouraged by improving engagement in certain areas (e.g., time spent on Spotlight grew 23%; now contributes more than 40% of content watch time). We fear SNAP could also lose ad dollars to larger peers.