The price target was reduced to $7.50 from $8. Brian Nowak, an analyst at Morgan Stanley, said the price reduction was related to weak engagement trends, which were driving revenue estimates lower. Snap is currently rated as underweight.
Daily snaps fell to 3 billion from almost 4 billion since year-end 2017.
The company reported earlier this month an adjusted first-quarter loss of 17 cents a share, in line with analysts' estimates, and group sales of $230.7 million, below estimates of $244.5 million. Daily active users on the social media platform rose in the quarter by 15% to 191 million but were below analysts' expectations.
Snap shares closed at $10.97, down 0.6% on Monday.