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Analyst: 'Buy' Beaten-Down Snap Stock

Snapchat is bouncing from oversold territory, while Netflix and Vantiv earned upbeat analyst attention

Jul 13, 2017 at 10:45 AM
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Analysts are weighing in on TV streaming stock Netflix, Inc. (NASDAQ:NFLX), online mobile camera application Snap Inc (NYSE:SNAP), and payment processor Vantiv, Inc. (NYSE:VNTV). Here's a quick roundup of today's bullish brokerage notes on shares of NFLX, SNAP, and VNTV.

Netflix Scores Pre-Earnings Price-Target Boost

Netflix stock is down 0.1% to trade at $158.65, even after Morgan Stanley raised the TV streaming stock's price target to $185 from $175 -- in uncharted territory. In addition, Cantor Fitzgerald reiterated an "overweight" rating and $190 price target, waxing optimistic ahead of Netflix's earnings release on Monday, July 17. Up more than 28% year-to-date, NFLX recently jumped back above its 80-day moving average, pullbacks to which have marked buying opportunities in the past. NFLX hit a record high of $166.87 on June 8, and a solid earnings showing next week could propel the shares even higher. Short interest represents nearly a week's worth of pent-up buying demand, at Netflix stock's average daily trading volume -- plenty of fuel for a short squeeze.

Stifel: Wheels Aren't Falling Off Snap's User Growth

Snapchat parent Snap, is up 3.8% at $15.82, after an upgrade to "buy" from "hold" by Stifel. The brokerage firm said it is "relishing the opportunity" to upgrade the beleaguered stock, and that "contrary to current sentiment, we do not believe the wheels are falling off Snap's user growth story." Snap stock recently made headlines after underwriter Morgan Stanley downgraded the shares, pushing the equity even further south of its March IPO price.

SNAP's short interest grew roughly 82% during the past two reporting periods, accounting for approximately 70.8 million shares, or close to 6% of the stock's total available float. At SNAP's daily trading volume, it would take more than four sessions to buy back these pessimistic positions. Moreover, SNAP's 14-day Relative Strength Index (RSI) is now at 24, putting SNAP in oversold territory.

Vantiv Stock Upgraded at Keybanc

Keybanc upgraded its rating on Vantiv to "overweight," lifting the stock 1.2% to trade at $63.73. VNTV hit a record high of $66.24 in late April, but has since been in a channel of lower highs and lows. Of the 20 analysts following Vantiv stock, 11 rank it a "buy" or better. Additionally, VNTV's short interest downsized nearly 25% in the past reporting period.

 

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