Summit Insights Upgrades Snap Inc (SNAP) to Hold
Summit Insights upgraded Snap Inc (NYSE: SNAP) from Sell to Hold with a price target of $16.00 (from $8.00).
Analyst Jonathan Kees commented, "After focusing on developed countries and iOS phones, Snap (SNAP) mgmt. changed gears to target more developing countries and to vastly improve its Android offering with the fruits of their shift showing early results in 4Q17 (Dec). While mgmt. has also made changes to the core product and to the ad model, we remain cautious as these cumulative changes are still early and fraught with execution and market risks as well as 4Q’s record performance was helped by seasonality and a record level of A/R. While we upgrade to Hold from Sell to give credit to mgmt.’s efforts as well as to recognize the scale in its financial model, the stock continues to trade at sector extremes at 13.7x 2018 sales with Facebook (FB) being the only peer coming close at 10x. We set our price target to $16 from $8 based on 15x 2018 revs of $1.28B."
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Shares of Snap Inc closed at $14.06 yesterday.