6 Reasons For A Positive View On Snap

Snap Inc SNAP products are differentiated, the audience is highly engaged and the company’s Delete by Default approach is “increasingly attracting a wider audience,” JMP Securities’ Ronald V. Josey said in a report. He initiated coverage of the company with a Market Outperform rating and a price target of $28.

6 Positives

Josey mentioned the following positives for Snap:

    1. Audience: At scale, engaged and growing.
    2. Product innovation: Differentiated products like Lenses, Geofilters and Spectacles.
    3. Ad Products: Attracting incremental demand.
    4. Ad API: Is expanding Snap’s reach.
    5. Spectacles optionality: Snap is, at its core, a camera company.
    6. Margin expansion.

“While we acknowledge it remains early in Snap’s evolution with risks around DAU [daily average users] growth, competition, and profitability as shares have limited (at best) shareholder rights, we believe DAU growth is recovering, advertisers are actively adopting the platform, and Snap’s use of the Cloud provides increased flexibility,” the analyst wrote.

Josey mentioned that Snap was among the most innovative companies, while adding that its at scale and engaged audience could attract meaningful incremental advertising demand.

Related Links:

Is Snapchat's Snap Another 'Junk' IPO?

Snap 'Ain't Your Parents' Camera Company,' Citi Sees Revenue Of $13 Billion

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasNewsInitiationAnalyst RatingsMoversTechMediaTrading IdeasJMP SecuritiesRonald V. JoseySnapChat
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!