Cowen Previews Snap's Q2 Earnings, Trims Price Target

Analysts from Cowen previewed Snap Inc (NYSE: SNAP)'s Aug. 7 second-quarter report. Here's what you need to know.

The Analyst 

Analyst John Blackledge maintained an Underperform rating on Snap with a price target lowered from $9 to $8.

The Thesis 

A Cowen ad buyer survey suggested lower-than-expected spending with Snap by 32 percent of respondents, leading Blackledge to lower near- and long-term estimates, the analyst said in a note. (See Blackledge's track record here.) 

The lower figures come on the heels of Cowen's previous Snap estimate cuts in June. 

Ninety percent of the survey's respondents prefer advertising on other platforms like Instagram Stories, Blackledge said. 

Given these factors, Cowen forecast both short- and long-term top-line estimates to be 3- and 6-percent below consensus, respectively.

Unfortunately for Snap, its initial novelty may be a thing of the past, as other social media competitors continue to rival and exceed their features.

Instagram released a questions feature on Tuesday to supplement the app's stories option — both of which arrived souped up with a new palette of interactive stickers and emojis.

Cowen sees Snap's daily active users coming in at 192 million for the quarter.

Price Action

Snap shares were trading down 1.72 percent to $13.42 at the time of publication Friday afternoon. 

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