By Sam Boughedda
Investing.com -- Snap Inc (NYSE:SNAP) shares rose Tuesday after Deutsche Bank initiated coverage of the stock with a Buy rating and a $45 price target.
Analyst Benjamin Black, who initiated the rating, told investors in a note that Snap offers investors a favorable risk/reward profile due to near, medium, and longer-term upside catalysts.
Black also spoke on the impact of Apple (NASDAQ:AAPL)'s IDFA or Identifier for Advertisers change, saying they think the Street overestimates its impact. The change from Apple means users now have to opt-in to the unique random device identifier used by advertisers to deliver personalized ads.
"Beyond IDFA, DAU growth appears as strong as ever, driven by (1) content investments, (2) new feature rollouts, (3) international expansion, and (4) supportive network effects across younger demos," explained the analyst
"Relative to Meta and Twitter, Snap's user monetization also screens low and we expect this monetization gap to narrow. With its reach advantage across Millennials and Gen Zs, brands and agencies increasingly consider Snap an integral platform for future media buys, rather than a small component of their experimental budgets," he added.
Following the report, Snap shares rose 7%.