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Goldman Sachs Upgrades Snap On Positive User Trends

Brett Hershman

Snap Inc (NASDAQ: SNAP) has received an upgrade after better-than-expected user growth.

The Analyst

Goldman Sachs analyst Heath Terry upgraded Snap from Neutral to Buy and raised the price target from $13 to $18.

The Thesis

The upgrade comes as Goldman Sachs sees product improvements and feature additions leading to gains in the second half of the year.

“For Snap, we believe product improvements and feature additions are driving positive trends in user growth and engagement that, along with monetization improvement from ad tech initiatives, should drive upside to consensus estimates,” Terry said.

The analyst said underlying strength in core revenue drivers for internet companies, online advertising and e-commerce should result in upward revisions to consensus estimates and stock price outperformance.

The popularity of Snapchat's latest viral gender swap filters are also leading to the upgrade.

Price Action

Snap shares are up 1.58%, trading at $15.80.

Related Links:

Is Snapchat's Stock A Buy After Stabilizing Its User Base? The Street Debates

Guggenheim: What Snap Investors Need To Know About Instagram, Android And Advertising

Latest Ratings for SNAP

Date Firm Action From To
Jul 2019 Upgrades Neutral Buy
Jul 2019 Reiterates Neutral
Jun 2019 Maintains Buy

View More Analyst Ratings for SNAP
View the Latest Analyst Ratings

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