Citi analyst Mark May downgraded Snap to Neutral and cut his price target for the shares to $20 from $24.
The camera company closed yesterday down 4% to $18.85. A slower than expected roll-out of new platforms and channels like self-serve is slowing down the pace of monetization growth, May tells investors in a research note. Further, he believes investors "may continue to be wary near term" of the company's user growth, which disappointed in Q1.
The analyst adds that the IPO lock-up expiration in August will increase the stock available for sale by over 500% or 949M shares. He believes this could pressure the stock.
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