Deutsche Bank analyst Lloyd Walmsley upgraded Snap (SNAP) to Buy as he believes Snapchat's parent is best positioned among mid-cap advertising names to both weather the coronavirus storm and as he sees upside to shares in an eventual recovery. Voicing a similar opinion, his peer at Argus also raised Snap's rating to Buy, citing the company's continued growth in daily active users and revenue.

FAVORITE NAME IN MIDCAP ADVERTISING: In a research note to investors, Deutsche Bank analyst Lloyd Walmsley upgraded Snap to Buy from Hold with a price target of $19, down from $20. The analyst believes Snap is best positioned among mid-cap advertising names to both weather the coronavirus storm and sees upside to shares in an eventual recovery. Pointing out the stock is down 44% from recent highs, the analyst added that he was impressed with Snap's daily active user growth turnaround and accelerating revenue growth in 2019. He also believes investor concerns around the company's first-quarter daily active growth are overblown.

ONGOING GROWTH IN DAILY ACTIVE USERS, REVENUE: Argus analyst Jim Kelleher also upgraded Snap to Buy from Hold with a $16 price target, citing the company's continued growth in daily active users and revenue. The analyst further noted that Snap shares are down 41% from their 52%-week highs and appear to offer good value based on peer comparisons and discounted free cash flow valuation. Kelleher had been looking for a favorable entry point for Snap, and nonfundamental weakness in the stock due to the coronavirus panic presents such an opportunity, he contended. While he acknowledged that there is a risk he is "getting in too early" on Snap shares, the analyst argued that the coronavirus is likely to drive more, not less, traffic to the Snapchat site, resulting in modest growth acceleration.

PRICE ACTION: In afternoon trading, shares of Snap have dropped about 2% to $10.60.