Analysts at Citi and Bank of America Merrill Lynch started their coverage on Snap Inc., TheFly.com reported March 27.

Citi analyst Mark May initiated Snap at "buy," noting that the company's low rate of monetization currently and high rate of engagement and penetration should "enable significant revenue growth and margin leverage." The analyst set a $27 price target on the company's shares.

BofA analyst Justin Post, meanwhile, started coverage on Snap at "neutral," with a $25 price target. Post believes the company's shares "discount strong execution" and believes slowing user growth poses to be the biggest risk.