Jefferies: 'Encouraging Steps by the Comeback Kid'
Rating: Hold
Price target: $9 (from $7)
"We remain on the sidelines, but are incrementally more positive with underlying growth in iOS users and a niche audience that is increasingly difficult to reach in a digital age," analyst Brent Thill told clients Wednesday.
He added that 2018 was the "year of exodus from both employees and users on the platform, but we believe that Snap is turning the corner in '19 and that will help investor sentiment improve throughout the year. We also would like to see Snap lay out some simple framework on its 3-5 year planning and help to simplify the narrative around the story."
RBC Capital Markets: 'An Inflection Point?'
Rating: Sector Perform
Price target: $10 (from $8)
"Things clearly getting less worse, but are they getting better?" Mark Mahaney wrote in a note on Monday.
He said he was maintaining his rating on the stock, rather than upgrading it, due to "valuation and uncertainty."
"SNAP noted that it is cautiously optimistic and does not foresee a Q/ Q decline in DAUs in Q1. Still, we are reserving judgement on the early, limited release of the improved Android app, with mngmt saying early tests showing promise," he wrote, referring to daily active users.
JP Morgan: 'A Better Quarter w/ Users Stable & Progress on Negative EBITDA & FCF'
Rating: Underweight
Price target: $7 (from $6)
"Though these were encouraging results, one quarter doesn’t make a trend and we remain Underweight as we look for further signs of improvement in the business," analyst Doug Anmuth said. "We continue to believe growing DAUs will be challenging and the competitive landscape for both user time and advertiser dollars remains intense."
He added: "We believe there is better risk/reward in other names, including FB & TWTR, which are two of our top picks."
Citi: 'Snap Makes Progress in 4Q18'
Rating: Neutral
Price target: $9 (from $7)
"Mgmt stated that it has begun to roll out its new Android app to small set of users, and that tests have been positive," analyst Mark May, who upgraded the stock last month to "neutral" from "sell," wrote in a report out Wednesday.
"All in, we view these results and outlook as encouraging. However, given valuation and still-flat user and engagement trends, we are maintaining our Neutral rating."
Credit Suisse: 'DAU Stabilization, Waiting for Growth/Android Catalysts to Emerge'
Rating: Outperform
Price target: $10.50 (from $9.50)
"As we look forward to the balance of 2019, the more important product development will be the Android app release to help reignite user growth," analyst Stephen Ju told clients on Wednesday. "Timing remains TBD for now, although Snap acknowledged that it remains in beta testing in a number of different regions."
He added: "We continue to assume DAU deterioration for 1Q19-3Q19 as before, with Snap to show a U-shaped recovery starting in 4Q19."
Instinet: 'Things Starting to Stabilize'
Rating: Neutral
Price target: $9 (from $6)
"The two most positive pieces of the 4Q story were that the user base stabilized, and the redesigned Android app has been rolled out selectively after a fairly long wait; the company expects a broader rollout to other geographies sooner rather than later," analyst Mark Kelley told clients Wednesday.
he added: "We also think the Stories ad format is gaining traction by virtue of Facebook’s push there as well, which is something that likely bodes well for SNAP longer term if user trends improve."
