DA Davidson initiates Snap with 'neutral' and $5 PT
BUZZ-DA Davidson initiates Snap with 'neutral' and $5 PT ** D.A. Davidson & Co initiates Snap SNAP.N with "neutral" rating and $5 PT, implying ~8% upside to stock's last close
** Brokerage says despite revenue growth, Snap faces ongoing challenges in North America user engagement and difficulties in driving advertising ARPU, which it expects to continue impacting future quarters
** Adds subscriptions remain the highlight of the business and this segment appears to be underappreciated by investors
** Specs is a very interesting product and may surprise to the upside with expectations so low; faces execution risk due to hefty price point and Meta META.O competition - brokerage
** "We expect Specs to continue pressuring margins for the foreseeable future" - brokerage
** Nine of 43 brokerages rate the stock "buy" or higher, 31 "hold" and three "sell"; their median PT is $7 - data compiled by LSEG
** As of last close, stock down ~42% this year
(Reporting by Jaspreet Singh in Bengaluru)
((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))
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