Snap initiated with a Reduce at HSBC

HSBC analyst Mohammed Khallouf initiated coverage of Snap with a Reduce rating and $7.50 price target. Snap has been struggling with an adverse advertising industry climate and a social media landscape that is moving in the direction of the creator driven short-form media content popularized by TikTok, the analyst tells investors in a research note. The analyst believes the “growing gulf” in content, user engagement, advertising solutions, and financial resources between the leading players and Snap likely precludes a successful turnaround of the business.