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.
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Shares of Snap Inc closed at $13.05 yesterday.