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Snap Rallies on Redburn Upgrade to Buy With $10 Target

Redburn cites a path to profit built on Snapchat+ growth alongside AI-driven efficiencies.

Overview

  • Snap shares rose about 7–8% to an intraday high near $6 following Monday's Redburn upgrade to Buy with a $10 price target.
  • Redburn’s case points to GAAP profitability coming into view, stronger ad demand, and Snapchat+ subscription revenue more than doubling to about $1.75 billion within three years.
  • Snap is cutting about 1,000 jobs and taking $95–$130 million in restructuring charges as it transitions finance leadership to Doug Hott, with management targeting over $500 million in annualized savings by the second half of 2026.
  • Caution persists on Wall Street with a Hold consensus and an average price target near $8, and insider filings show sales of about 2.56 million shares worth roughly $13.3 million last quarter.
  • The next catalyst is the May 6 earnings report, where investors will look for evidence that cost cuts, subscription growth, and ad tools are lifting revenue toward the roughly $1.53 billion target and expanding margins.