U.S. President Donald Trump gave a bullish Thanksgiving address to troops overseas on Thursday, hailing progress in Afghanistan and against ISIS, and telling them they …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
Newly filed court documents confirm that Fusion GPS, the company mostly responsible for the controversial “Trump dossier” on presidential candidate Donald Trump, made payments to …read more
The attorney for Democratic Michigan Rep. John Conyers, who is accused of continuously sexually harassing his female staffers, defended Conyers by indicating that there are …read more
While in Baltimore City, Maryland, death and despair are a few things that are plentiful as the region descends into chaos.read more
Five of six executives of U.S.-based refiner Citgo who were arrested in Caracas this week are U.S. citizens, according to a source familiar with the …read more
Investigators in Baltimore have found no conspiracy behind the shooting death of a homicide detective killed the day before he had been set to testify …read more