Snap (NYSE:SNAP) shares rose more than 3% pre-market today after Deutsche Bank upgraded the company from Hold to Buy, raising the price target from $10.00 to $19.00.

The analysts based their upgrade on several key catalysts: incremental revenue from Snapchat+, strong results from the ad platform rebuild, the potential impact of Snap’s partnership with Amazon, and increasing advertising from China. These factors, they believe, are driving an upward revision in Snap’s revenue and EBITDA estimates.

Evidence of a successful ad platform rebuild, indicated by growing purchase-related conversions, has led to an acceleration in ad spend, which the analysts expect to continue. Despite recognizing competition risks, notably from TikTok, and the potential slowdown in daily active user growth, the analysts are optimistic. They increased their 2024/2025 revenue and EBITDA estimates by 5%/6% and 38%/20%, respectively.

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