From Snap Inc. (SNAP) – Request report Stocks rose higher on Tuesday after Goldman Sachs analysts raised their price target for the messaging app maker to the highest on Wall Street.
Goldman analyst Heath Terry kept his buy rating on the stock in place, but raised his price target by $ 23 to $ 70 a share, the highest on Wall Street, citing “ some technical innovations and product partnerships ” driving sales growth beyond Street could speed up predictions.
Snap itself declined to provide earnings forecasts for the current quarter when it released third-quarter street-beating earnings on Oct. 20, due to wider pandemic uncertainty, but noted that “annual revenue growth of 47% to 50% is achievable “. when advertising for the holidays is in line with previous trends.
Snap’s Spotlight product, new ad campaign objectives and bidding types, and the Unity partnership, notably the inclusion of Unity Ads in the Snap Audience Network (SAN), have the potential to further drive engagement growth and to provide advertisers with valuable scale, ”said Terry.
“In addition, our recent ad controls and third-party data suggest an outperformance from the company’s initial outlook for 4Q, an acceleration that we believe is sustainable beyond the current quarter.”
Snap shares were flagged 11.2% higher during early trading Tuesday to change hands at $ 53.70 each, a move that would extend the stock’s gains to about 130% in six months. Snap traded an all-time high of $ 54.71 on December 17.
Snap shares first traded on the Nasdaq on March 2, 2017 for $ 25 a share after its initial public offering at $ 17 a share. The stock then dropped below $ 5 a share in December, amid uneven efforts by co-counder and CEO Evan Spiegel to simultaneously increase the appeal of the signature messaging app to older users while keeping the zeitgeist among renowned underwriters to keep.
Since 2019, however, the stock has been on a continuous run adding nearly $ 70 billion in value to the Santa Monica, California-based tech group as it added more users and attracted more advertisers to its Snapchat platform, a hugely influential social media. media tool for teen and young adult users.
Snap’s third-quarter revenue grew 52% year-over-year, in part due to Facebook’s boycott in July (FB) – Request report by major advertisers, with daily active users up 18% from the same period last year to 249 million.
On an adjusted basis, the group also pushed itself into third quarter earnings of a cent a share, compared to a loss of 4 cents a share last year and Street’s consensus forecast of a loss of 5 cents a share.