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Cracking Snap pops higher as no fewer than 8 analysts start coverage, the majority with ‘buy’
The gloves were off for analysts covering recent New York market debutant Snap Inc. (NYSE:SNAP) today as no fewer than eight of them started coverage on the Snapchat owner, mostly with bullish ratings.
According to traders, five of the analysts tagged the social media group with the equivalent of a ‘buy’ rating, and three had ‘hold’ or equivalent ratings on the firm.
New price targets set for Snap shares ranged from US$23 to US$31, and in pre-market trade on Wall Street the stock was up over 3% at US$23.43.
That top price target was nabbed by RBC Capital analyst Mark Mahaney, who initiated Snap with an ‘outperform’ rating, noting that the firm has become an innovation leader for consumers and advertisers in the fastest advertising medium, mobile.
In a note to clients, Mahaney said: “We believe that if it sustains its current level of innovation, it can sustain premium growth for a long time and scale to profitability”.
Snap shares surged over 40% above its IPO price of US$17 a share on its first day of dealings at the start of this month. Since then the stock has lost around 7% from that peak.
Snap’s IPO valuation of almost $20bn represented the biggest listing of a tech company globally since China’s internet marketplace Alibaba floated in 2014.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175462/cracking-snap-pops-higher-as-no-fewer-than-8-analysts-start-coverage-the-majority-with-buy--175462.html
