BTIG Research: We Should Have Started Snap at Sell

BTIG Research: We Should Have Started Snap at Sell

Earlier this week, BTIG Research made a confession: It should have started Snap (NYSE: SNAP) with a sell rating when it initiated coverage in April. Instead, BTIG had started the Snapchat operator's shares with a neutral rating back when shares were trading over $22. "With the stock down 28% in the past six months since our initiation at Neutral, we were wrong to not have a SELL rating," writes analyst Rich Greenfield.

However, Greenfield is not downgrading his rating on Snap to sell now, but is sticking with a neutral rating, in part because shares have lost roughly 30% of their value since the initial call. "We missed that drop," Greenfield told Cheddar TV, and current levels of around $15 warrant a neutral rating until investors get more financial visibility into how Snap can improve monetization and execution of the ad business.

.@richbtig: Snap needs to tout "stickiness" of users, prove ROI of media product to brands. #CheddarLIVE $SNAP pic.twitter.com/llBwpLsFNo

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Source: Fool.com