Snap (NYSE: SNAP) stock price received several price target upgrades from analysts amid substantial growth in ads. SNAP shares bounced almost 163% this year. However, the stock experienced most of the acceleration during the first half of the year.
The share price remained stable during the past couple of months due to investor’s concerns over light guidance.
Snap stock price is currently trading around $15, down slightly from an all-time high of $18 a share. Market analysts are optimistic about the upside potential. The majority of analysts are expecting SNAP shares to hit $20 in the coming days.
Analysts Upgraded Snap Stock Price Target
Loop Capital increased its price target to $20 from $5 with a Buy rating. The firm sees higher investor’s optimism due to user engagement and improvement in ad revenue growth.
On the other hand, JPMorgan upgraded shares to Overweight with a price target of $20. The firm is showing confidence in valuations and the latest financial results. Meanwhile, Needham raised the ratings to Hold from Underperform.
LightShed Partners started covering Snap shares with a $20 price target. The firm believes positive first-hand feedback from advertising clients and programming partners is the biggest catalyst for future growth. LightShed says the company is in the stage of monetizing over 200 million daily active users.
Financial Numbers are Backing The Upside Movement
Internet Content & Information Company has topped third-quarter revenue and earnings estimates by a wide margin. Its Q3 revenue of $446 million increased 50% year over year.
It had added 7 million Daily Active Users in Q3; the company also saw higher customer engagement across key metrics. In addition, the company has been aggressively strengthening its ad platform products and capabilities.
Evan Spiegel, CEO. “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term.”
Snap expects fourth-quarter revenue to stand around $540M-$560M while adjusted EBITDA could came in at $20M. Overall, Snap stock price is likely to receive support from increasing numbers across all segments.