(Reuters) - Snap Inc’s shares slipped 1.3 percent to $15.48 in premarket trading on Friday, after IPO underwriter Cowen downgraded the stock to “market perform” and lowered its price target to $17 from $21.
Cowen becomes the second IPO underwriter to lower its rating this week, after Morgan Stanley downgraded the stock on concerns about the social media company’s ability to compete against rival Instagram on Tuesday.
The company’s shares closed below their initial public offering price of $17 for the first time on Monday, as investors become increasingly concerned about the Snap’s ability to grow amid intense competition from the likes of Facebook Inc.
Several of Snap’s underwriters handed the stock “buy” ratings in March, although analysts not involved in the IPO had assigned it neutral or negative ratings.
Currently, 16 of the 36 brokerages covering the stock have a “hold” rating. Eleven rate it “buy” or higher and seven have a “sell” or lower recommendation. The median price target of $19 has fallen about 21 percent in the last three months.
Note - Data compiled from latest available research notes and Eikon data.
Reporting by Narottam Medhora in Bengaluru; Editing by Saumyadeb Chakrabarty
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