Brian White Sees Snap As More Than A Camera Company

Drexel Hamilton’s Brian White sees Snap Inc SNAP as a “very unique tech company that should not be pigeonholed in a particular industry, or investors risk missing the forest for the trees.”

The analyst initiated coverage of the company with a Buy rating and price target of $30.

More Than A Camera Company

“We view Snap as a platform for the imagination that unlocks the creativity of its users and allows uninhibited expression with friends. Snap is a fun place to spend time which can be monetized,” White mentioned.

The company’s flagship product, Snapchat, is one of the most popular mobile apps among millennials, having exited 2016 with more than 158 million average daily active users.

“As such, Snap taps into the most desirable, largest and most difficult to reach generation for advertisers – millennials,” the analyst noted.

While other social messaging platforms might have a significantly higher user base, White believes Snapchat’s user base of millennials would be difficult for other platforms to garner.

Related Link: Snapchat Finally Gets A 'Buy' From The Sell Side

Opportunities Abound

In addition, the analyst believes “there is significant opportunity for the Snapchat “pixy dust” to spread overseas and across generations in the coming years.”

Also, Snap’s position as a pioneer in the growth of augmented reality opens up meaningful monetization opportunities for the company in mobile advertising.

“Today, Snap is focused on the wealthier, more developed parts of the world but we believe Asia offers attractive growth opportunities in the future as more consumers enter the middle class (largely from Asia), driving increased smartphone ownership and expanded 4G network coverage,” White went on to say.