Snap unlikely to support activist recommendations, says Wells Fargo

Wells Fargo analyst Ken Gawrelski keeps an Equal Weight rating on Snap (SNAP) with an $8 price target after activist Irenic Capital initiated an activist campaign. Snap’s founders control 99% of vote and are unlikely to support most of the activist’s recommendations, the analyst tells investors in a research note. Wells believes Snap management is unlikely to consider a full spin, with a “minority stake sale more realistic.” In addition, the company’s opportunity to rationalize headcount is “less obvious” as its revenue per employee appears aligned with peers, contends the firm.