SNAP stock is heading higher on Tuesday following a new price target for it.
The new price target for Snap (NYSE:SNAP) comes from BTIG analyst Rich Greenfield. This update from the analyst has the price target for SNAP stock increasing from $15 per share to $20 per share.
That new price target for SNAP stock represents a roughly 33% increase over the previous price target from Greenfield. It is also sitting at about 47% above the stock’s closing price of $13.55 on Monday.
“We believe street expectations for user growth and revenues/Ebitda are simply too low, with far too many investors continuing to ignore Snapchat’s recovery, driven by repeated overpromising/missing expectations during Snapchat’s first two years as a public company,” Greenfield says in a note obtained by MarketWatch.
What doesn’t change from this recent update on SNAP stock is the BTIG analyst’ rating. The firm continues to hold a “Buy” rating for the stock. The reason for the rating is the belief that the company will continue to see increasing user growth with its core demographic of users between the ages of 13 and 34.
Another benefit for SNAP stock comes from new features it is introducing. This includes the addition of games within its app. There have also been new filters that have gone over well with users. Other new filters that perform well may also be a reason that Snap could see an increase in users, CNBC notes.
SNAP stock was up 8% as of noon Tuesday and is up 134% since the start of the year.
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As of this writing, William White did not hold a position in any of the aforementioned securities.