Snap appears ready to bottom out and could reach $30 a share, leading analyst says

Key Points
  • Snap could be a great buying opportunity, Drexel Hamilton's Brian White says.
  • The stock appears to be bottoming out and is poised to reach $30 a share, White says.
  • He also says Snap could get some share in the mobile ad revenue market.
Drexel Hamilton's Brian White: Snap presents great buying opportunity here
Drexel Hamilton's Brian White: Snap presents great buying opportunity here

Snap's stock could be ready to bottom out, and could rise to $30 a share, tech analyst Brian White told CNBC on Monday.

The Drexel Hamilton analyst noted on "Squawk Box" that about four months after Facebook went public the stock was down 60 percent and then rose. Four months after Snap's IPO, the stock is down 48 percent, and White said it's poised to rise.

"I think it's a great buying opportunity," Drexel Hamilton's global head of technology hardware and software said. "If you look at a lot of high growth companies, in the first three years after an IPO, they trade at nine to 22 times enterprise value to revenue."

Shares of Snap fell below their IPO price last week for the first time. Snap dipped to $16.95 before closing at $16.99, just below the $17 price of the March offering. The stock closed at $15.27 a share on Friday.

White said Snap is feeling some pressure from Mark Zuckerberg, whose company has cloned some of Snapchat's most popular features and has dominated the mobile ad revenue market. But it "doesn't have to be winner takes all," White said.

CNBC's Jim Cramer predicted on Thursday that Snap might get a summer bump. He said insiders who got a crack at the Snap IPO at the offer price won't sell the stock when they're finally allowed to on July 31.

"I think the next thing that happens is the insiders come out and say, 'We're not selling, not at these prices. If anything, were buyers,' he argued.

Other analysts say they're concerned with Snap's slow development of ad products and Facebook's recent aggressive approach.