Imran Khan, who served as Snap’s (SNAP) chief strategy officer, is leaving the company to pursue other opportunities. Since its IPO, Snap has lost its chief financial officer, head of product, head of engineering, chief counsel, head of sales and head of hardware. In other words, Khan was one of the last remaining executives from the management team that took the company public. Khan will continue to serve for an interim period and his last day has yet to be determined.
SunTrust Robinson analyst Youssef Squali commented, “Snap’s personnel departures have been due to a multitude of reasons including the company being in LA, strategic shifts or reported conflicts with the founders. We acknowledge internet companies have higher levels of turnover compared to many other industries, but believe the lack of stability in the senior team while the company is undergoing a material turnaround steepens the challenges ahead […] We believe that the high level senior departures led Mr. Khan to be encumbered with too many responsibilities, making the execution against a long list of challenging tasks difficult. As a result of his departure now, we reiterate our belief that Snap could benefit from reinforcement in the C-suite. His departure could also be an opportunity to split his role into different positions.”
“Snap’s stock has recently hit all-time lows as the company struggles to find its footing with the Street. Considering the announcement of Khan’s departure was made without an announcement of a replacement, we believe the company could face some recruiting challenges for high-level talent as it starts looking for a replacement or replacements,” the analyst added.
Net net, Squali reiterates a Hold rating on Snap shares, with a price target of $13, which implies an upside of 33% from current levels.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a yearly average return of 22.6% and a 68.8% success rate. Squali has a -5.2% average return when recommending SNAP, and is ranked #64 out of 4871 analysts.
Wall Street believes Squali is smart to play it safe when it comes to the social media giant’s prospects ahead, as TipRanks analytics reveal SNAP as a Hold. Out of 17 analysts polled in the last 3 months, 3 are bullish on Tesla stock, 9 remain sidelined, and 5 are bearish on the stock. With a potential upside of nearly 28%, the stock’s consensus target price stands at $12.50. (See SNAP’s price targets and analyst ratings on TipRanks)