Snap Initiated with Neutral Rating; 29.64% Price Target Upside

On September 20, 2024, B. Riley Securities initiated coverage of Snap with a Neutral recommendation, forecasting a 29.64% upside in its price target. The projected revenue growth for Snap indicates positive momentum, despite a slight decrease in fund owner positions.

Date: 22-09-2024

AI Rating: 6

B. Riley Securities has recently initiated coverage of Snap with a Neutral recommendation. The price forecast suggests a potential upside of 29.64% from the current closing price of €9.06 per share, which could positively influence investor sentiment.

The report indicates that Snap's projected annual revenue growth is estimated at 12.06%, reaching €5,582MM. This growth projection may enhance the attractiveness for investors seeking stocks with increasing revenue.

Regarding Earnings Per Share (EPS), the annual non-GAAP EPS projection is 0.40. This figure will be watched closely by investors as increasing EPS is typically viewed favorably and may reflect improving profitability.

While there’s a noted decrease in the number of fund owners by 0.22% in the last quarter, there has been a 7.59% increase in total shares owned by institutions, with 910 funds reporting positions. This suggests a cautious sentiment among funds, with some institutions increasing their allocations to Snap.

The large funds that have reported allocations show mixed actions - some increasing their shareholding while others show slight declines. For example, Fidelity Blue Chip Growth Fund increased its holdings by 4.01%, while Vanguard Total Stock Market Index Fund decreased theirs by 0.28%.

Overall, while investor interest remains significant and revenue projections are optimistic, mixed fund sentiment could introduce volatility in stock prices.

Stocks: SNAP