Needham – Underperform (Sell)
Atlantic Equities – Underweight (Sell)
Morningstar – (Sell)
Aegis – (Hold)
Susquehanna – (Hold)
Nomura Instinet – Reduce (Sell)
Pivotal Research – (Sell)
Snap has had mixed reactions from the Street and has yet to receive a “buy” rating from any analyst listed in FactSet.
Analysts at Needham initiated coverage of the social media firm’s stock with an “underperform” rating, noting the company’s total addressable market is 80 percent smaller than Facebook.
“Prospect Theory would label SNAP a ‘lottery-like’ stock,” they said in a note Monday.
Atlantic Equities, Morningstar, Nomura Instinet, and Pivotal Research also gave the social media company a “sell” rating.
Brian Wieser, a senior analyst at Pivotal Research, said in a note that Snap “is a promising early stage company with the significant opportunity ahead of itself. Unfortunately, it is significantly overvalued given the likely scale of its long-term opportunity and the risks associated with executing against that opportunity.”
