Here's How Benchmark Views Twitter, Pinterest, Snap

  • Benchmark analyst Mark Zgutowicz initiated coverage of multiple social media stocks.
  • Zgutowicz initiated coverage of Twitter Inc TWTR with a Hold rating and no price target. He views Twitter as providing high utility to a niche user base. 
  • Still, he sees limited ability to scale beyond an otherwise event-driven branding platform and does not believe Twitter will ever achieve its 50% direct response mix target.
  • Related: Here's Why Benchmark Feels That Meta's Advertising Problem Is 'Getting Worse, Not Better'
  • Zgutowicz initiated coverage of Pinterest Inc PINS with a Hold rating and no price target. 
  • Pinterest has always offered unique visual IP and high utility to its "predominantly female audience," but its niche demographic has been "its Achilles heel," Zgutowicz said.
  • Zgutowicz initiated coverage of Snap Inc SNAP with a Buy rating and $50 price target (22.4% upside). 
  • The current valuation does not accurately reflect future digital advertising share gain from improving relative return on ad spends, or "ROAS," compared to peers, argues Zgutowicz.
  • Price Action: TWTR shares traded lower by 1.1% at $35.16 on the last check Tuesday. PINS shares traded lower by 1.83% at $26.26, and SNAP shares traded lower by 2.20% at $39.06.
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