Snapchat parent Snap Inc. was initiated at Susquehanna Financial with a neutral rating, saying any upside from near-term "eurphoria" and potential product innovations are offset by concerns over competition and valuations over the longer term. Analyst Shyam Patil set a $22 price target on the stock, which is 29% above Snap's IPO price of $17, but 2% below Thursday's first-day closing price of $24.48. "Euphoria could cause a short-term disconnect between fundamentals and valuation, but longer-term we struggle to see Snap as an investment with meaningful upside potential from current levels," Patil wrote in a note to clients. Patil expects new products to help daily average users (DAU) rebound in the near term, and believes Snap's total addressable market is "undeniably large," he is concerned about competitive positioning over time with the launch of Facebook Inc.'s Instagram Stories. On Thursday, Instinet started coverage of Snap with a reduce rating and Pivotal Research initiated it with a sell. Currently, the average rating of the six analysts surveyed by FactSet is the equivalent of underweight and the average stock price target is $16.50. Meanwhile, the stock gained 0.7% in premarket trade, while early indications suggested a 0.1% decline for the S&P 500 .
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