Morgan Stanley Reiterates Underweight on Snap (SNAP) Following 2Q

Morgan Stanley reiterated an Underweight rating and $7.50 price target on Snap Inc (NYSE: SNAP) following the company's 2Q earnings report. 2Q revenue and EBITDA were better than feared, but 2Q user declines expected to continue in 3Q highlight still-existing platform challenges.

The high end of 3Q top-line guidance ($290mn) was within 1% of Morgan Stanley's previous estimate...and SNAP’s new management team appears to bringing more opex discipline to the business as the top end of 3Q adjusted EBITDA guide was 37% ($93mn)higher than modeled. SNAP showed first signs of revenue and EBITDA stability.

For an analyst ratings summary and ratings history on Snap Inc click here. For more ratings news on Snap Inc click here.

Shares of Snap Inc closed at $13.05 yesterday.

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