Price Target: $6
Rating: Underweight
"We view Tim’s resignation as CFO—after only 8 months on the job—as a clear negative," analysts led by Doug Anmuth told clients on Tuesday.
"We believe in his short time at Snap Tim implemented greater operational and financial discipline, with emphasis on moving Snap toward positive free cash flow and profitability."
They added: "Importantly, Tim’s departure suggests it will become even more challenging for Snap to recruit and retain high quality executives."
Anmuth and his team also said Snap shares would be under pressure, but believe a modest bull case has emerged for a "small number of investors focused around easier revenue comps in '19, engagement potentially bottoming out, and extremely negative sentiment."