Snapchat’s corporate parent got a boost from a pair of analyst upgrades on Thursday, but shares of the social-media company still were sucked into the broad-market undertow.
At last check shares of Snap (SNAP) - Get Report fell 4.7% to $10.30. This on a day when markets plunged amid the latest coronavirus news, at one point triggering a circuit breaker and trading halt. Tthe Dow Jones Industrial Average lost nearly 2,200 points, or more than 9%.
Analysts at both Argus and Deutsche Bank released bullish research notes on Snap, arguing that the Santa Monica, Calif., social-media company is well-positioned to weather the mounting economic and societal disruptions caused by the spread of the deadly covid-19, according to published reports.
Boosting his rating on Snap to buy from hold, Deutsche Bank's Lloyd Walmsley wrote the social-media company is “best positioned among midcap advertising names” in terms of both surviving the economic fallout from the coronavirus and riding the upswing that will eventually follow.
The Deutsche Bank analyst cited accelerating revenue growth at Snap during 2019 and a rebound in growth of its active daily users.
Analysts at Argus hiked their rating on Snap to buy from hold, with a $16-a-share price target, indicating a roughly 60% premium to its current trading price.
Argus also cited Snap’s growth in both revenue and active daily users, seeing the potential for a further bump up in traffic due to the impact of the coronavirus.
And analysts at both investment firms cited the recent steep declines in Snap’s stock price as offering an opportunity for investors.
Snap traded at a 52-week high $19.76 a share on Jan. 24.