Advertisers Are So Over Snapchat, Deutsche Bank Warns

Snap Inc.'s (SNAP) - Get Report Snapchat social media platform is falling out of favor with advertisers, according to Deutsche Bank analyst Lloyd Walmsley, who lowered the company's rating to "hold" from "buy." 

Walmsley also lowered the company's price target to $17 from $20. Snap shares were down 1.36% to $15.13 in trading Monday following the downgrade. The price target represents a potential 11% upside from the stock's opening price.

"Over the last few weeks we have spent a significant amount of time speaking to advertisers, API partners and content partners within the Snap/advertising ecosystem. But just as the company makes progress with its ad systems, the narrative in the ad community has become more challenging," Walmsley wrote. 

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