Snap (NYSE:SNAP) shares rose on Monday at the same time as funding agency Credit score Suisse lower its estimates for the second-quarter, noting worries over promoting budgets because the financial system is on shaky floor.

Analyst Stephen Ju, who has an outperform ranking on Snap (SNAP), lowered his 2022 and 2023 earnings estimates, as he now expects the corporate to lose 86 cents and 62 cents per share, down from a previous estimate of a lack of 86 cents and 58 cents per share.

“As we’ve got beforehand famous, Snap doesn’t have broad publicity to all verticals – it’s strongest in leisure, tech, commerce, and CPG – all of which had macro, provide chain, enter prices, or in some instances idiosyncratic headwinds affecting budgets,” Ju wrote in a observe to purchasers, whereas additionally reducing the value goal to $45, down from $59.

As well as, Ju famous that each one of those verticals “noticed progress decelerate [quarter-over-quarter] from [first-quarter] to [second-quarter] and indications up to now in [the third-quarter] seem related.”

Snap (SNAP) shares rose greater than 1.5% to $13.88 in premarket buying and selling.

The Evan Spiegel-led firm is ready to report second-quarter outcomes on July 21 and analysts count on the corporate to lose an adjusted three cents per share on $1.14B in gross sales.

Regardless of the earnings lower, Credit score Suisse nonetheless has an outperform ranking on Snap (SNAP), citing the potential for every day energetic consumer progress after it revamped its Android app, in addition to better-than-expected advert income on account of product rollout and the continued monetization alternatives in Video games, Maps and Highlight.

Final week, funding agency Monness, Crespi, Hardt mentioned that Snap (SNAP) is prone to see “wholesome” every day energetic consumer progress within the second-quarter.