.Friday, September 20, 2024 04:32 AM

B.Riley analysts initiated coverage on Snap Inc. (NYSE:SNAP) with a Neutral rating and a price target of $11, citing the company’s large audience base for potential revenue growth. They expect direct-response ads to drive near-term growth, while brand advertising may lag. Snap’s current trading at 20.1x its 2025 estimated EV/adjusted EBITDA is seen as fully valued, prompting B. Riley to maintain a neutral stance. Improvements in user engagement and ad platform enhancements could provide upside potential, but the timing and extent of gains are uncertain.