Snap Inc (NYSE:SNAP) received a second “buy” rating from a Wall Street firm, according to a report from CNBC on March 21.
On Tuesday, Drexel Hamilton initiated coverage on Snap with a “buy” rating. The firm assigned a price target of $30. The stock currently trades at around $20.
“Snap views itself as “a camera company” and we believe this fosters a mindset for innovation to transcend the boundaries of its competitors,” the firm’s analyst Brian White said in the note to investors.
“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 added.
Snap has the ability to reach the “most desirable” and “most difficult to reach generation for advertisers”: millennials, according to the report.
“Although other social messaging platforms enjoy a much higher user base, we believe Snapchat has a cachet with millennials that will be difficult for other platforms to garner,” White said.
On Monday, Snap Inc (NYSE:SNAP) received its first “buy” rating from Monness Crespi Hardt.
With a market cap of $24.7 billion, Snap is a camera company. It was founded in 2011 by Evan Spiegel and Bobby Murphy. The company’s products include Snapchat, Spectacles, and the Bitmoji app. Snapchat is the company’s flagship product. It allows users to communicate through short videos and images known as a Snap.
Snap went public earlier this month. It raised about $30 billion in market capitalization on the first day of trading.
Shares of Snap closed up 2.26% on Tuesday.