Snap: shares jump after broker upgrades to 'buy'
(CercleFinance.com) - Snap shares rose on Thursday after Jefferies upgraded the stock to "buy", saying Wall Street forecasts have become too conservative for 2020.
Jefferies said it believes monetization is still "too low" relative to social media peers and expects ad revenues to double over the next three years.
"We believe Snap can accelerate user growth, as augmented reality (AR) lenses, the rebuilt Android app and local language investments strengthen the platform," the US broker said.
According to its survey of 800 US 13-24 year olds, 34% of respondents said that they were using AR lenses more than six months ago, Jefferies noted.
The broker has raised its target price for the share from 17 dollars to 21 dollars.
Snap shares are up 4.8% at 17.5 dollars in early morning trading.
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