Cantor Fitzgerald Reaffirms Their Buy Rating on Snap Inc

By Austin Angelo

In a report released today, Kip Paulson from Cantor Fitzgerald maintained a Buy rating on Snap Inc (NASDAQ: SNAP), with a price target of $17. The company’s shares closed yesterday at $14.91.

Paulson observed:

“Monetization per minute has significant upside potential… We’re modeling for Snap’s 2017 US ad revenue per DAU (ARPU) to rise 53.4% y/y to $9.56 (vs. FB’s (OW) $103.31), and for its 2017 US ad rev per min (x 1,000) to also rise by 53.4% y/y to $0.87 (vs. FB’s $5.66). On both counts, we believe Snap’s monetization has room to go substantially higher as bid density improves on the self-serve platform and as mobile video/ads in the Discover tab ramp up.”

According to TipRanks.com, Paulson is a 4-star analyst with an average return of 13.5% and a 71.9% success rate. Paulson covers the Technology sector, focusing on stocks such as Rubicon Project, Facebook Inc, and Alphabet Inc.

Currently, the analyst consensus on Snap Inc is Hold and the average price target is $15.02, representing a 0.7% upside.

In a report issued on September 5, Drexel Hamilton also assigned a Buy rating to the stock with a $30 price target.

Based on Snap Inc’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $182 million and GAAP net loss of $443 million. In comparison, last year the company earned revenue of $71.8 million and had a GAAP net loss of $116 million.

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Snap, Inc. engages in the operation of its camera platform. It is also involved in the provision of advertising by helping its partners generate a return on their investment by creating engaging advertising products. Its products include Snapchat, Publisher Tools, and Spectacles.