Snap Investors Cautioned Not To 'Miss The Forest For The Trees'

Brian White of Baird initiated coverage of Snap Inc (NYSE: SNAP) earlier this month with a Buy rating and $30 price target. On Tuesday, the analyst reiterated his rating and price target after the social media app saw its rankings improve.

White commented in his latest research report that the Snapchat app rose from the third-ranked free application in the App Store to No. 2, followed by Snap's Bitmoji app at No. 3. In addition, Snapchat's Sponsored Lenses also realized its best week over the past few months.

With that said, White stated that Snap is a "very unique tech company that should not be pigeonholed in a particular industry." Doing so would result in investors "missing the forest for the trees." Moreover, while many consider Snap to be a social media company, the company itself argues it is a camera company. The analyst believes this "fosters a mindset for innovation."

Snap's Advantage Over Facebook

White argued that comparing Snap to Facebook Inc (NASDAQ: FB) and Twitter Inc (NYSE: TWTR) isn't fair as Snapchat has a better hold of the millennial crowd that other platforms can't mimic.

In fact, Snap is able to better tap into what the analyst described as being the most desirable, largest and most difficult group for advertisers.

Bottom line, investors will better understand the fact that Snap is a camera company and sentiment should improve. This will also help boost the stock higher after bouncing back 16 percent last week.

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