Snap Inc (NYSE:SNAP) shares climbed on Wednesday after the company reported upbeat third-quarter results.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

Cantor Fitzgerald On Snap

Analyst Deepak Mathivanan maintained a Neutral rating while raising the price target from $8 to $9.

Snap reported its adjusted EBITDA ahead of expectations, with the beat being driven by better cost management, Mathivanan said in a note. The company’s fourth-quarter guidance is better than feared, he added.

While initial testing of Simple Snapchat is “showing decent gains in select markets” and new DR (direct response) products are “delivering promising results,” the company’s revenue growth continues to be impacted by headwinds in the brand business, despite stable DR growth, the analyst stated.

“Looking ahead into FY25E, there are still plenty of uncertainties on SNAP’s revenue-growth trajectory,” he wrote.

B. Riley Securities On Snap

Analyst Naved Khan reiterated a Neutral rating while lifting the price target from $11 to $12.

Snap reported third-quarter revenues and adjusted EBITDA of $1,373 million and $132.0 million, surpassing consensus of $1,358 million and $92.7 million, respectively, Khan said. Brand revenues remained weak, down 1% year-on-year, and management does not expect a meaningful turnaround for the holiday season, he added.

DR ads benefit from increasing adoption by small and medium businesses, with revenues growing 16%, the analyst stated. The company’s fourth-quarter guidance “looks light on revenue and reflects caution given the risk of disruption from the rollout of Simple Snapchat to select markets and users, as well as exposure to upper funnel ad spend in the seasonally strong 4Q,” he further wrote.

JMP Securities On Snap

Analyst Andrew Boone reaffirmed a Market Outperform rating while lowering the price target from $17 to $16.

Snap reported in-line third-quarter results, with a slight revenue beat and EBITDA ahead of consensus by $32 million, which was in-line with past beats, Boone said. The high end of the fourth-quarter revenue guidance met consensus, he added.

Snap plans to begin testing Sponsored Snaps “more earnestly” in the fourth quarter, while DR growth of 16% year-on-year was consistent with that in the previous quarter, “despite a 10-point tougher comp,” the analyst stated. “Simple Snapchat is driving engagement for less engaged users but iOS users see less benefit,” he further wrote.

BofA Securities On Snap

Analyst Justin Post maintained a Neutral rating while lifting the price target from $13 to $14.

“DR growth was driven by strong demand …

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