Analyst James Heaney downgraded the technology stock to hold from buy, saying in a note to clients Thursday that a difficult macro picture should pressure Snap's revenue growth over the next year.
"We believe that SNAP will continue to face several headwinds, including the iOS14.5 privacy changes, a worsening macro picture, and intense competition," he said.
"While many of these factors are well understood, [consensus revenue estimates] still appear too optimistic, particularly given the lack of company specific catalysts."
That drop could protect Snap shares to the downside if not for its "lack of profitability and clear product catalysts," Heaney said.
"We believe SNAP's multiple should remain discounted relative to peers given our muted expectations for revenue growth over the next few years," Heaney wrote.