<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Snap (SNAP), the maker of the Snapchat app, was one of the hottest stocks in the market in 2019, adding an enormous 181% to the share price over the year. Unfortunately for investors, a large chunk of these gains has disappeared following the coronavirus outbreak — Snap stock is down by 35% year-to-date. However, the mighty pullback has provided an enticing entry point, according to one analyst.” data-reactid=”12″>Snap (SNAP), the maker of the Snapchat app, was one of the hottest stocks in the market in 2019, adding an enormous 181% to the share price over the year. Unfortunately for investors, a large chunk of these gains has disappeared following the coronavirus outbreak — Snap stock is down by 35% year-to-date. However, the mighty pullback has provided an enticing entry point, according to one analyst.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wells Fargo’s Brian Fitzgerald upgraded Snap from Equal Weight to Overweight. Though, due to lowering estimates, the price target gets a bump – from $20 to $14. The possible upside still remains a healthy 31%. (To watch Fitzgerald’s track record, click here)” data-reactid=”13″>Wells Fargo’s Brian Fitzgerald upgraded Snap from Equal Weight to Overweight. Though, due to lowering estimates, the price target gets a bump – from $20 to $14. The possible upside still remains a healthy 31%. (To watch Fitzgerald’s track record, click here)
The case for snapping up Snap shares in the current climate makes sense. Less time outside socializing means additional time at home to spend on social media. Snap gets an additional boost from recent shenanigans on rival WhatsApp. With the amount of misinformation circulating on the Facebook owned app, the nature of Snap’s disappearing messages means people can chat more freely without worrying about the implications of spreading misinformation and the consequences associated.
Fitzgerald summarized, “We don’t expect SNAP to be immune from COVID-19 impacts on ad budgets— though SNAP’s strong direct response momentum, limited SMB exposure and lower international exposure could insulate SNAP somewhat relative to peers—but believe the outsized move in SNAP shares in recent weeks has created an attractive entry point for long-term holders.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The rest of Wall Street largely buys into what this social media player has to offer, as TipRanks analytics reveal SNAP as a Buy. This breaks down into 17 Buys and 11 Holds. At $19.40, the average price target is set to provide investors with upside of 82%. (See SNAP stock analysis on TipRanks)” data-reactid=”25″>The rest of Wall Street largely buys into what this social media player has to offer, as TipRanks analytics reveal SNAP as a Buy. This breaks down into 17 Buys and 11 Holds. At $19.40, the average price target is set to provide investors with upside of 82%. (See SNAP stock analysis on TipRanks)
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