Snap Stock Buoyed by Barrage of Buy Ratings

Copyright 2017 The Associated Press. All
AP/REX/Shutterstock

Shares of Snap Inc. rose 4.5% Monday hot on the heels of many “buy” ratings issued by the research divisions of banks that underwrote the company’s initial public offering earlier this month.

The stock closed at $23.83 after riding higher than the $24 IPO opening-price level for much of the day. The boost countered initial bearish assessments from analysts that suppressed Snap shares during its first few weeks on the market.

But Monday marked the end of a 25-day quiet period for banks that supported Snap’s IPO. Citigroup, Deutsche Bank, Credit Suisse and Goldman Sachs were among the analysts who issued rosy outlooks for the Snapchat parent company.

“Snap looks well positioned for growth as advertisers clamor to serve ads to its large audience of deeply-engaged users, many of whom are in the attractive millennial demographic and are located in high-value ad markets,” wrote Jefferies analyst Brian Fitzgerald, who also issued a buy rating.

In an “outperform” rating issued by Cowen & Co. analyst John Blackledge estimated that Snap would more than double its 2016 revenues this year to just over $1 billion and eventually take approximately 5% share of the booming global mobile advertising market by 2022.

Snap shares have been on a roller-coaster ride since IPO, rocketing 59% on its first few days on the market before dropping low double-digit percentages in subsequent weeks. Last week, Snap shares found their footing, posting a 16% gain.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading