B.Riley analysts initiated coverage on Snap Inc. (NYSE:SNAP) with a Neutral rating and a price target of $11 on the stock. The analysts highlighted Snap’s large audience base, which positions the company to grow its advertising and subscription revenues while boosting profitability.

The analysts expect direct-response ads to drive near-term growth, while brand advertising on the platform may lag behind. Although improvements in North American user engagement and ad platform enhancements could provide upside potential, the analysts cautioned that the timing and extent of these gains are uncertain.

With Snap currently trading at a premium valuation of approximately 20.1x its 2025 estimated EV/adjusted EBITDA, B. Riley views the stock as fully valued and opts to maintain a neutral stance.