A proposal by U.S. Republicans to repeal and replace the Obamacare health insurance program suffered serious new setbacks within the party on Sunday, when Senator …read more
Snap snaps back after analyst assigns first ‘buy’ rating
(Reuters) – Snap Inc (SNAP.N) stock rose on Monday after the Snapchat owner received its first “buy” rating from a Wall Street analyst following a $3.4 billion public listing this month that raised the eyebrows of many on Wall Street.
The social media company’s public listing on March 1 was the hottest by a technology firm in three years, but after two days of explosive gains, its stock has mostly fallen as investors worry about Snap’s high valuation and lack of profitability.
Based on the average of analysts’ buy, sell and neutral recommendations, Snap is the worst-rated stock among 288 U.S. companies that have a market capitalization of at least $20 billion, according to Thomson Reuters data.
Crespi, Hardt & Co analyst James Cakmak on Monday gave Snap its first “buy” rating and a $25 target price. Its stock at midday was up 2.09 percent at $19.96.
“We see a company with the potential to outpace revenue growth of peers by 7x, along with a steep margin trajectory, while peer margins have likely peaked,” he said in a report.
Cakmak’s recommendation stands out among reports by analysts concerned about Snap’s slowing user growth, widening losses and lack of voting rights for outside investors. Snap has warned it may never be profitable.
Another five analysts have recommended selling Snap while four analysts have neutral ratings.
In its first two days of trading, Snap surged 59 percent from its $17 IPO price. Since then, it has lost 26 percent.
(Reporting by Noel Randewich; Editing by Cynthia Osterman)
More Top Stories
U.S. President Donald Trump on Sunday was considering a replacement to his controversial executive order barring travel to the United States from several majority Muslim …read more
Chancellor Angela Merkel won a fourth term in office on Sunday but will have to build an uneasy coalition to form a German government after …read more
U.S. trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well-placed sources said on Sunday, underlying …read more
Refugees have left one of Australia’s offshore detention centers on Sunday for the United States, an asylum seeker and a refugee advocate said, as part …read more
U.S. President Donald Trump dialled up the rhetoric against North Korea again at the weekend, warning the country’s foreign minister that he and leader Kim …read more