Market Overview

Despite Huge Run Already In 2019, RBC Sees Further Upside For Snapchat's Stock

Share:
Despite Huge Run Already In 2019, RBC Sees Further Upside For Snapchat's Stock

Shares of Snap Inc (NYSE: SNAP) are up more than 100 percent since the start of 2019 and multiple catalysts ahead could help the momentum continue, according to RBC Capital Markets.

The Analyst

RBC's Mark Mahaney upgraded Snap from Sector Perform to Outperform with a price target lifted from $10 to $17.

The Thesis

The company behind Snapchat suffered multiple execution issues throughout 2017 and 2018, but key catalysts coupled with a "much-less demanding" valuation warrants a bullish stance on the stock, Mahaney said in a note. For example, Snapchat remains a top-10 ranked app in the U.S. and top-four within the Photo & Video Category. This suggests evidence of stabilization among iOS users while third-party data in key markets found a "uniform sequential ramping" in Google Play downloads among Android users.

Snap has a few initiatives to help boost monetization, including early signs of the Selfe-Serve Platform being popular with advertisers, improving ROI communication with performance advertisers and the six-second commercials have resulted in strong engagement from users.

Mahaney says Snapchat continues to offer a differentiated value proposition that "may now become appreciated." In fact, Mark Zuckerberg's new vision for Facebook, Inc. (NASDAQ: FB) to transform towards a privacy-focused and messaging platform favors Snapchat's camera-first approach to social media.

Price Action

Snap's stock was trading higher by more than 4.7 percent at $12.40 per share Monday morning.

Related Links:

3 New Initiatives From Snapchat Create 'Opportunity' To Drive Usage

Analyst Optimism Pushes Snap Shares Higher

Latest Ratings for SNAP

DateFirmActionFromTo
Oct 2019UpgradesNeutralBuy
Oct 2019UpgradesUnderweightEqual-Weight
Oct 2019MaintainsNeutral

View More Analyst Ratings for SNAP
View the Latest Analyst Ratings

Posted-In: iOS Mark Mahaney RBC Capital MarketsAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (FB + SNAP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

JPMorgan Downgrades GE, Says Wall Street 'Significantly Over Projecting' Cash Flow

A Cannabis Bubble? Tim Seymour Believes Market Has Been 'Grossly Understated'