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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.