Snap Stock Initiated With Bearish Rating And $16 Target At Instinet

By Jennifer Booton Markets MarketWatch Pulse

Shares of Snap Inc. were initiated with a reduce rating, which is a bearish outlook equivalent to a sell rating, at Instinet Thursday, hours after the stock debut. Analyst Anthony DiCliemente set a 12-month price target on the stock of $16, which would mark a decline from Thursday afternoon trading prices. The stock soared more than 51% to $25.70 in recent trade after pricing at $17 a share Wednesday night. DiClemente cited slowing user growth, slowing monetization growth and "fierce competition from larger rivals," such as Facebook, WhatsApp and Instagram, all Facebook Inc. properties, for the bearish rating. Earlier on Thursday, Pivotal initiated coverage on Snap with a sell rating and $10 target, saying it believed Snapchat was "significantly overvalued."

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