Vetr Inc. Downgrades Snap Inc. (SNAP) to Buy

Andrew Cummings
July 14, 2017

Zacks Investment Research lowered shares of Snap Inc.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Global X Management Co. Ltd. purchased a new position in Snap during the first quarter valued at $223,000. The company was maintained on Thursday, June 29 by Drexel Hamilton. Despite concerns in the market and persistent comparisons to Twitter, we believe Snap's business remains on track fundamentally as it continues to develop innovative consumer products and increasingly sophisticated tools for advertisers. (SNAP) opened at 15.69 on Friday. The company has market cap of $18.42 billion. The stock's 50 day moving average is $19.18 and its 200-day moving average is $20.72. Snap has a 1-year low of $15.56 and a 1-year high of $29.44. Snap also was the recipient of some unusual options trading on Tuesday.

Calls convey the right to buy shares at a fixed price in the future and usually are used to place bets on shares rising, while put options give the right to sell shares at a certain price in the future. This is an increase of approximately 259% compared to the typical volume of 16,010 put options.

Snap (NYSE:SNAP) last released its quarterly earnings data on Wednesday, May 10th. The company had revenue of $149.60 million for the quarter, compared to analysts' expectations of $158.32 million. The firm's revenue was up 285.6% compared to the same quarter a year ago.

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A number of research analysts have recently commented on the company. The longer-term picture is encouraging and the social media platform and hardware company will benefit from two themes: 1) better access to the younger demographic and 2) improving ROI/measurability.Moreover, at below $17 per share, Snap's stock represents a favorable risk to reward profile with further downside potential of just 13 percent but upside potential of 45 percent, the analyst emphasized. The company now has a consensus rating of Hold and an average target price of $21.34.

Snap Inc's shares were up 4.2 percent at $15.88 in early trading on Thursday, after IPO underwriter Stifel raised its rating on the stock to "buy". The rating was initiated by Pivotal Research with "Sell" on Thursday, March 2. They set a neutral rating for the company. Finally, Oppenheimer Holdings, Inc. reaffirmed an outperform rating and issued a $23.00 price target on shares of Snap in a report on Tuesday. The stock of Snap Inc (NYSE:SNAP) earned "Buy" rating by Deutsche Bank on Monday, March 27.

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