Snap price target raised to $15 from $14 at Roth MKM

Roth MKM analyst Rohit Kulkarni raised the firm’s price target on Snap to $15 from $14 but keeps a Neutral rating on the shares. The company’s “clean-beat” Q1 results and upbeat Q2 guide reinforce the firm’s near-term thinking as it had held an incremental positive bias heading into earnings, but while the management’s progress in attracting SMB advertisers and growing its Direct Response business deserves applause, Snap’s AI infrastructure investments remain high, leading to negative operating margins and low gross margins, the analyst tells investors in a research note.