Shares of Snap Inc (NYSE: SNAP) are up more than 100 percent since the start of 2019 and multiple catalysts ahead could help the momentum continue, according to RBC Capital Markets.
RBC's Mark Mahaney upgraded Snap from Sector Perform to Outperform with a price target lifted from $10 to $17.
The company behind Snapchat suffered multiple execution issues throughout 2017 and 2018, but key catalysts coupled with a "much-less demanding" valuation warrants a bullish stance on the stock, Mahaney said in a note. For example, Snapchat remains a top-10 ranked app in the U.S. and top-four within the Photo & Video Category. This suggests evidence of stabilization among iOS users while third-party data in key markets found a "uniform sequential ramping" in Google Play downloads among Android users.
Snap has a few initiatives to help boost monetization, including early signs of the Selfe-Serve Platform being popular with advertisers, improving ROI communication with performance advertisers and the six-second commercials have resulted in strong engagement from users.
Mahaney says Snapchat continues to offer a differentiated value proposition that "may now become appreciated." In fact, Mark Zuckerberg's new vision for Facebook, Inc. (NASDAQ: FB) to transform towards a privacy-focused and messaging platform favors Snapchat's camera-first approach to social media.
Snap's stock was trading higher by more than 4.7 percent at $12.40 per share Monday morning.
3 New Initiatives From Snapchat Create 'Opportunity' To Drive Usage
Analyst Optimism Pushes Snap Shares Higher
Latest Ratings for SNAP
|Apr 2019||RBC Capital||Upgrades||Sector Perform||Outperform|
|Apr 2019||Summit Insights Group||Upgrades||Sell||Hold|
|Apr 2019||Bank of America||Maintains||Neutral||Neutral|
View More Analyst Ratings for SNAP
View the Latest Analyst Ratings
See more from Benzinga
- 3 New Initiatives From Snapchat Create 'Opportunity' To Drive Usage
- Analyst Optimism Pushes Snap Shares Higher
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