Snap Inc (NYSE:SNAP) was a big winner amid an otherwise gray, gloomy trading day. You can thank a sudden slew of “buy” recommendations on SNAP stock that sent investors into a buying frenzy.
Shares of the nascent company wafted just less than 5% higher on Monday after Snap’s underwriters unleashed a bevy of “buy” ratings. Those include …
- Morgan Stanley
- Goldman Sachs
- RBC Capital Markets
- Credit Suisse
- Jefferies
- William Blair & Co.
- Cowen
- JMP Securities
Meanwhile, a few opened SNAP shares at “Hold” or equivalent:
- UBS
- JPMorgan
- Stifel
- Oppenheimer
In total, SNAP stock has 12 “buy” ratings, 11 holds and six who rate it a “sell.”
Morgan Stanley, for one, is “bullish about Snap’s ability to monetize its highly engaged daily active user (DAU) base.” The underwriter goes on to say, “First, we believe Snap’s millennial audience and differentiated online video ad inventory are in demand by advertisers.”
Prior to Monday’s latest ratings, the 12-month consensus on SNAP shares was $20.30, or roughly 15% below Monday’s closing price of $23.83. Those who put a price target on SNAP stock Monday believe shares will reach $27.20 over the next year, or about 14% upside from Monday’s close.
Looking at Snap Stock Going Forward
Don’t judge an initial public offering on day one unless you’re willing to have your bank account reflect just how wrong you were. That’s the lesson learned by investors who soured on Facebook Inc (NASDAQ:FB) after its much-hyped, IPO flop.
FB stock is now up about 270% since its 2012 IPO price of $38, and investors who chickened out have kicked themselves many times over those years.
While SNAP stock soared after going public, it quickly gave back those gains over the following days and weeks as investors wondered if they’ve gone overboard on the social/camera company’s valuation. But investors who missed the boat on FB are desperate for the next big thing.
Just don’t lose your shirt looking for it.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
