DEXWireNews

Snap (NYSE: SNAP) Shares Gain on Jefferies Upgrade

Long
NYSE:SNAP   Snap Inc.
Snap (NYSE:SNAP) shares rose more than 2% pre-market today after Jefferies upgraded the company to Buy from Hold and raised its price target to $16.00 from $12.00.

The most challenging times for the company seem to be over, and they see a pathway back to a mid-teens revenue CAGR over the next 3-5 years. The underperformance of Snap in the past, according to Jefferies, was largely due to the rebuild of their direct response (DR) advertising platform. This revamp led to a drop in revenue in the first two quarters of the year. However, recent developments suggest that the DR platform is starting to show positive trends.

Snap is well positioned to achieve a 15% revenue growth in fiscal 2024, marking a significant increase from around 0% in 2023.

Price Momentum
SNAP is trading near the top of its 52-week range and above its 200-day simple moving average.

What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.

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