Snap Initiated At Rare Buy Rating

Snap Inc. was initiated Monday at buy, a rare move so far, by James Cakmak of Monness, Crespi, Hardt. Cakmak noted that many critics of the stock are concerned about Snap's high valuation and see the possibility of Snap falling into "pitfalls" seen by other social media companies. Snap has not yet proven that it can make a profit or create a business outside of its one product, but Cakmak said they believe Snap is well-positioned to do this. "There is substantial execution risk, but we're prepared to give the benefit of the doubt at this stage," Cakmak said. He set a price target of $25. Snap, parent of social media company Snapchat, started trading March 2, but hit some bumps as the stock had fallen 20% as of Friday. Of the 11 analyst ratings in FactSet, there are no buy ratings.