Snapchat Snags its first buy rating

Snap Inc. (NYSE: SNAP) shares jumped Monday after Wall Street finally provided the social media company its initial “buy” rating. Monness Crespi Hardt originated coverage on the parent company of Snapchat with a “buy” rating and price target of $ 25. The parent company of Snapchat was ahead of more than 1 percent Monday in premarket trading.

“We recognize we are potentially giving a lot of credit for building skills in a business, rather than just a product, but we see more than Snap than many suggest,” analyst James Cakmak said in a note to investors, noting the company has the Potential to outpace the revenue growth of its peers.

Snap originally raised the attention of Wall Street, with analysts diminishing the company’s reducing user growth, broadening costs and lack of voting rights for outside investors. On Friday, Snap closed down nearly 2 percent, marking an 11.5 percent regression for the week. The stock fell 18.5 percent in the week that ended March 10. On Thursday, Snap shares dropped below $ 20 for the first time, nearing an IPO price of $ 17 per share, after it got hit with another sell rating.

Leave a Comment