On Wednesday, shares of Snap Inc. (SNAP - Free Report) are popping, up around 6% to $21.59 per share in morning trading after the social media company received its second ‘Buy’ rating.
Drexel Hamilton analyst Brian White initiated coverage on Snap with a bullish ‘Buy’ rating and a $30 price target. He based these moves on his views that the company’s main product, Snapchat, is still incredibly popular with millennials, one of the biggest and most desirable demographics for advertisers, despite increased competition from Facebook (FB - Free Report) .
"We view Snap as a platform for the imagination that unlocks the creative juices of its users and allows for uninhibited expression to be shared with friends," White wrote in a note to clients. "Moreover, Snap is making more original content available to its user base."
White also compared Snap to iPhone maker Apple Inc. (AAPL - Free Report) , saying that like the tech giant, Snap is “built around a culture of working hard to develop great products for their customers.” He even drew comparisons between Apple co-founders Steve Jobs and Steve Wozniak to Snap co-founders Evan Spiegel and Bobby Murphy.
White’s rating followed that of James Cakmak, an analyst at Monness Crespi Hardt, who gave Snap its first ‘Buy’ rating with a $25 price target on Monday. In total, Snap has six ‘Sell’ ratings and three ‘Hold’ ratings from Wall street analysts.
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