Snap Inc (NYSE:SNAP) received another ‘Neutral’ rating from a Wall Street analyst, CNBC reported March 23. Shares of the Snapchat’s parent were trading up 6.00% in the after-hours trading session.
On Thursday, investment firm PiperJaffray initiated coverage on Snap at “Neutral.” The stock was given a price target of $23 by the firm. On Thursday, the stock was trading at around $23.13.
PiperJaffray is staying sidelined “Snap validates its ability to fend of copycat competition,” according to the report.
“Namely ephemeral photo/video and Stories platforms at Instagram and Facebook Messenger,” PiperJaffray senior research analyst Samuel Kemp said in a note to investors.
On Tuesday, Drexel Hamilton initiated coverage on Snap with a “buy” rating with a price target of $30.
“Snap views itself as “a camera company” and we believe this fosters a mindset for innovation to transcend the boundaries of its competitors,” Drexel Hamilton analyst Brian White wrote in his report.
“We view Snap as a platform for the imagination that unlocks the creativity of its users and allows uninhibited expression with friends. Snap is a fun place to spend time which can be monetized,” White wrote.
The analyst believes that Snap Inc (NYSE:SNAP) has the ability to reach the “most desirable” and “most difficult to reach a generation for advertisers”: millennials.
Snap was founded in 2011 by Evan Spiegel and Bobby Murphy. Its products include Snapchat, Spectacles, and the Bitmoji app. Snapchat, which lets users communicate through short videos and images known as a Snap, is the company’s flagship product.
Snap went public earlier March. The company raised about $30 billion in market capitalization on the first day of trading.
The consensus average recommendation for the Snap’s stock is ‘Hold,’ while the consensus average target price is $19.55. A total 13 analysts are covering the stock.
Mizuho Securities also has a ‘Neutral’ rating on SNAP, with a price target of $20.00.
“We believe that Snap will need to execute on user growth/engagement to grow into this valuation,” Mizuho analyst Neil Doshi said in a note, adding that “Snap is growing faster than Twitter at its IPO, but is not profitable – hence the lower valuation.”