BMO Raises Snap’s Target After 1,000-Job Cut: Is the Restructuring Finally the Catalyst Bulls Have Been Waiting For?

Snap (NYSE:SNAP) stock is getting fresh analyst attention after BMO Capital analyst Brian Pitz raised his price target to $15 from $13, keeping an Outperform rating on the shares. The catalyst: Snap’s announcement of a restructuring impacting 16% of its headcount, or roughly 1,000 jobs, expected to save $500 million annually. For long-term investors, the move signals Wall Street is starting to believe Snap’s cost discipline story is real.

Snap also raised its Q1 revenue outlook alongside the announcement. You can catch up on yesterday’s coverage of Snap’s restructuring announcement for full context. SNAP stock has climbed 28% since the restructuring announcement, reflecting how quickly sentiment shifts when a credible cost-cutting plan lands.

The Analyst’s Case

BMO’s Pitz argues that Snap remains a compelling long-term growth platform given its differentiated privacy in messaging and augmented reality. That’s a nod to Snapchat’s unique position among younger users and its AR roadmap, including the planned consumer launch of Specs AR smart glasses in 2026.

The firm also notes it expects Snap to see multiple support as AI and stablecoin concerns dissipate going forward. That framing suggests the current valuation discount stems from macro noise rather than Snap-specific fundamentals, a meaningful distinction for patient investors.

Company Snapshot

Snap posted $1.716 billion in Q4 2025 revenue, a 10% year-over-year increase, and delivered its first profitable quarter with EPS of $0.03 against a consensus estimate of -$0.03. Snapchat+ subscribers reached 24 million, up 71% year-over-year, diversifying revenue beyond advertising.

Snap CEO Evan Spiegel said, “Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion.” The full-year 2025 net loss came in at -$460.5 million, reminding investors that sustainable profitability remains a work in progress.

Why the Move Matters Now

Activist investor Irenic Capital Management, which holds approximately 3% of Snap, had been pushing for exactly this kind of action, estimating the company could be worth at least $26.37 per share. The restructuring aligns with those demands and gives management a credible path toward the full-year 2026 target of exceeding 60% gross margin.

The consensus analyst target price sits at $7.87, well below BMO’s revised $15 target, meaning Pitz is staking out a notably bullish position relative to peers. With 31 Hold ratings versus 10 Buy ratings on the Street, there’s room for sentiment to shift meaningfully if execution holds.

What It Means for Your Portfolio

The restructuring and analyst upgrade together make a cleaner bull case than Snap has offered in years. Cutting 1,000 jobs and $500 million in annual costs while raising revenue guidance draws serious attention from growth-oriented investors.

The risks are real. SNAP stock is down 26% year-to-date, the company carries an accumulated deficit of $13.1 billion, and the 52-week range of $3.81 to $10.41 tells you this is volatile. If you think Snap’s cost discipline is finally taking hold and its AR and AI investments can pay off, BMO’s upgrade warrants a closer look. If you need near-term profitability and stability, the full-year loss picture suggests patience remains the wiser posture.