Snap Inc's share price is up on fresh Wall Street analyst ratings on the stock

 
Lynsey Barber
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Snap's quiet period has ended after a blockbuster IPO (Source: Getty)

Shares in newly public tech company Snap Inc, the creator of messaging app Snapchat and more recently the Spectacles camera, are on the up after a series of fresh analyst ratings.

Stock shot up as much as five per cent before the bell and went up one per cent in early New York trading after ratings from Citi, Goldman Sachs, Morgan Stanley Jefferies and RBC Capital Markets were initiated.

Read more: Snap crackles and drops again as blockbuster IPO gains disappear

RBC gave Snap an outperform rating and a $31 price target, slightly above the highs for the stock of $29.44 shortly after the float.

Shares have since sunk as low as $18.90, closer to its $17 IPO price, but it has clawed back gains, closing on Friday at $22.74.

Citi gave Snap a buy rating and price target of $27, while Morgan Stanley gave it an overweight rating and price target of $28.

Read more: Snap raises $3.4bn in biggest tech float since Facebook

The ratings come after the required 25 day "quiet period" for underwriters of the blockbuster IPO.

RBC said in its note: "Snap has become an innovation leader – for both consumers and advertisers – in arguably the single fastest advertising medium today – mobile. It has also emerged as one of the leading media platforms for millennials.

"We believe that if it sustains its current level of innovation, it can sustain premium growth for a long time and scale to profitability."

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