Is Snap Stock Going Down to $7 or Up to $18?
Analysts can be passing ships sometimes, and we saw that on display when two Wall Street pros put out divergent opinions for Snap Inc. (NYSE: SNAP) on Tuesday. The day kicked off with Ross Sandler at Barclays upgrading the stock from Equal Weight to Overweight, jacking up his price target from $11 to $18. Snapchat's parent company rallied on the news, but then Anthony DiClemente at Evercore ISI initiated coverage with an Underweight rating and a price goal of just $7.
sandler feels that next year could be the turning point for Snapchat. The long overdue app redesign should help, and he doesn't see why Snapchat can't co-exist with Facebook (NASDAQ: FB) and Facebook's Instagram, with both companies thriving. DiClemente naturally doesn't see it that way, concerned that bullish analysts are being unrealistic with their revenue models given the way that Instagram is gaining in popularity at Snapchat's expense.
Image source: Snap Inc.
Source: Fool.com
