Snap stock climbed by more than 6% on Wednesday after another analyst gave it a firm vote of confidence. The Snapchat parent company received its second Buy rating paired with an even higher price target than the one that accompanied its first. Meanwhile, another analyst reported today that Snapchat is beating Twitter among advertisers. Despite that, even Twitter is on the rise today.
Coverage of Snap stock initiated at Buy
In a research note dated March 21, Drexel Hamilton analyst Brian White said he initiated coverage of Snap stock with a Buy rating and $30 price target, which is even higher than the all-time high of $29.44 set in the first few trading days. He described the company as “a very unique tech company that should not be pigeonholed in a particular industry.” In fact, White’s review of Snap stock appeared generally more positive than the one from Monness Crespi Hardt, the first to rate the shares a Buy.
He also noted that the company markets itself as a “camera company,” which he believes “fosters a mindset for innovation to transcend the boundaries of its competitors.” White also described the Snapchat parent company as “a platform for the imagination that unlocks the creativity of its users and allows uninhibited expression with friends.”
Millennials and augmented reality
He emphasized that Snapchat ended last year with 158 million average daily active users and noted that it’s very popular with Millennials, which he says are “the most desirable, largest and most difficult to reach generation for advertisers.” He feels it will be difficult for other social networks to capture the popularity Snapchat has among members of the generation.
White also highlighted Snap’s efforts in the area of augmented reality through its Spectacles product, which he said makes it an “early pioneer” in the technology. He sees lots of potential opportunities for monetization via mobile advertising. He notes that Snap users do need a high-end smartphone and a high-speed mobile network to use all of the features, and needless to say, a lot of the world has a lot of catching up to do in these areas.
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