Shares of Snap Inc. rose sharply on Monday following an analyst upgrade from Rothschild Redburn, which raised its rating to “Buy” from “Neutral” and doubled its price target to $10 from $5, implying roughly 77% upside. The stock jumped as much as 8.39% in trading.
The upgrade reflects growing confidence in Snap's financial trajectory, supported by stronger advertising demand, rising subscription revenue from Snapchat+, and ongoing cost discipline. The firm expects Snap's core business, excluding Spectacles, to have reached GAAP breakeven in fiscal 2025, with meaningful profitability projected in 2026. Analysts project an 11% compound annual growth rate in revenue between 2025 and 2028, driven by a 7% CAGR in advertising and a sharp increase in subscription revenue — from $745 million in 2025 to $1.755 billion in 2028.
Snap is also undergoing a major restructuring, targeting more than $500 million in annualized savings by the second half of 2026. The plan includes reducing approximately 1,000 jobs (about 16% of its workforce) and eliminating more than 300 open roles. The company is guiding for $95 million to $130 million in restructuring charges and has outlined a reduced 2026 expense outlook of $2.75 billion.
Additionally, Snap is in the midst of a leadership transition, with Doug Hott set to take over finance responsibilities after CFO Derek Andersen departs following the May 6 earnings call.
The broader analyst sentiment remains mixed — the stock carries a “Hold” rating and an average price target of $7.89. However, recent upward revisions to earnings estimates and improving fundamentals have added to optimism. Snap is set to report earnings on May 6, with analysts expecting a narrower loss of 7 cents per share on revenue of about $1.53 billion, up from $1.36 billion a year earlier.
