Stifel Upgrades Snap Inc (SNAP) to Buy

Stifel upgraded Snap Inc (NYSE: SNAP) from Hold to Buy with a price target of $22.00.

Analyst Scott Devitt comments that investors may be overreacting to the pending lock-up period and from Q1 results. He comments that "we think investors’ anticipation of the event could be more impactful to the stock than actual selling from the lock-up expiration. Roughly 60% of shares unlocking are held by Snap's directors and named officers, including ~50% held by Snap’s co-founders."

He says user engagement remains strong and user growth appears steady. He also says that "Snap is what investors have long wanted Twitter to be"which is thriving communications platform for hundreds of millions of high-value consumers.

FY 2017 EPS estimate is for a loss of $0.37 and FY 2018 EPS estimate is for a loss of $0.24.

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 $15.24 yesterday.

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