Snapchat parent company Snap Inc. (SNAP) filed for its public stock market debut last week, giving investors their first look at the company’s internal performance metrics and financials. Weighing in on the news and its impact on the social media space, research firms Nomura and Bank of America Merrill Lynch issued bullish notes on Facebook’s (FB) prospects in the wake of the Snapchat filing, saying the numbers revealed “less alarming than expected” threats to the social media leader and its Instagram subsidiary.

BOFA SAYS SNAP NUMBERS BELOW EXPECTATIONS: Bank of America Merrill Lynch’s Justin Post argues that details revealed in Snap’s IPO prospectus should be “less alarming than expected” for Facebook investors. The analyst highlighted that Snap posted 2016 revenue of roughly $400M, as compared to Facebook’s nearly $28B, while Q4 daily active users were 158M, versus the latter’s 1.23B plus 400M at its Instagram subsidiary, as well as Twitter’s (TWTR) 317M monthly actives. Growth in those numbers also appears to be slowing for Snap, with sequential user growth decelerating to just 3% in Q4, against the 7% of Q3 and 17% of Q2. Post also notes that Instagram Stories, which has drawn comparisons to Snapchat’s own “Stories” feature, has quickly amassed 150M daily actives in just its first five months. While conceding investor fears around Facebook’s 2017 spending growth, the Snap IPO, and reduced “ad load” growth, the analyst reiterates a Buy rating and $165 target on the stock, contending that Facebook’s multiple “can expand” as those concerns fade.

NOMURA QUESTIONS SNAP IPO VALUATION: Noting that the possible ascent of Snapchat has been a “key concern” for Facebook investors, Nomura’s Anthony DiClemente says he and his team now “grow more confident” that the upstart is “unlikely to negatively affect Facebook’s growth trajectory in a direct way, and that recent product improvements to Facebook and/or Instagram have moderated or perhaps reversed share shifts.” Though impressed with Snap’s seeming monetization ramp, the analyst came away “surprised” by the recent user growth deceleration. DiClemente notes that Snap appears to be going public at a later stage in its growth cycle than other Internet companies, with Q4’s 3% user uptick roughly half of what Facebook and Twitter demonstrated at the time of their respective IPOs. “Historically, user growth trajectory has been the foremost concern among investors in social media IPOs,” the analyst says, adding that media reports indicate Snap is pursuing a rich, $20B-$25B valuation despite its maturing profile. DiClemente keeps a Buy rating and $165 target on Facebook shares.