Stifel Likes SNAP at its Current Price Levels

Snap Inc. (NYSE:SNAP) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 6, Stifel upgraded its rating on Snap to a “Hold” from “Sell”. Despite the rating upgrade, the firm did not change its target price of $5.50 on the shares. In a research note to investors, the firm said that Snap’s risk/reward profile is now more reasonable at current share prices. They also believe that the bad news, namely declining North America user base, timid advertising growth, and unclear specifics on the company’s agreement with Perplexity, have already been priced in.

This rating change comes on the heels of Snap’s Q4-2025 results, which were released on February 4. The report showed that average daily active users (DAU) dropped 0.6% QoQ globally (from 477 million to 474 million). The decline was even more significant in North America, where DAU fell 4.1% QoQ (from 98 million to 94 million).

Snap’s advertising revenue in the 4^th quarter, meanwhile, grew 5% YoY to $1.48 billion (from $1.41 billion). This segment was a drag on overall revenue growth, which grew 10% YoY to $1.72 billion (from $1.56 billion).

Finally, Snap noted that the revenue uplift from the Perplexity deal, announced last November 2025, will likely be delayed because the two sides have yet to finalize a broader rollout plan. For reference, this is what was initially said about the agreement:

Under the agreement, Perplexity will pay Snap $400 million over one year, through a combination of cash and equity, as we achieve global rollout. Revenue from the partnership is expected to begin contributing in 2026.

Stifel believes that Snap’s stock price, which has fallen 37% year-to-date, already reflects these setbacks. Other firms covering Snap appear to share this sentiment, as the implied upside (based on the median analyst target price of $8.00, per CNN) remains high at 53.26%, despite a series of recent target price cuts.

Snap Inc. (NYSE:SNAP) is a technology company operating in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs including Camera, visual messaging, Snap Map, Stories, and Spotlight.

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Disclosure: None. This article is originally published at Insider Monkey.