BTIG initiates low-visibility Snap at Neutral

|By:, SA News Editor

BTIG has started coverage of Snap (SNAP -0.9%) at Neutral, saying the stock's fairly valued now and the challenge is whether it can fend off copycats (particularly, of late, Facebook (FB -0.4%)) and continue to innovate.

Richard Greenfield writes that "Snapchat's future and whether it proves to be a good investment from here depends on (co-founder Evan) Spiegel's ability to continue to out-innovate peers ... It is fairly easy for industry peers and upstarts to copy Snapchat's features, as they increasingly are doing, but only Spiegel and his team know the product road map from here, and how defensible these innovations may be."

That makes him conservative on modeling growth; combined with so little monetization history, it's hard to set a different fair value on shares.

Meanwhile, FTSE Russell will decide in July whether it will include shares of Snap in its indexes, as well as those of other companies whose structure denies voting ratings to shareholders.