🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Snap shares positioned for outperformance

Published 12/18/2023, 08:44 AM
Updated 12/18/2023, 08:46 AM
© Reuters.  Snap (SNAP) shares positioned for outperformance
NDX
-
SNAP
-

Guggenheim upgraded Snap (SNAP) to Buy from Neutral in a research note Monday, raising its price target for the stock to $23 from $9 per share.

The investment bank sees Snap shares positioned for outperformance in 2024, driven by strong digital advertising demand and improved relative returns for SNAP ad units.

Analysts believe that overall digital advertising demand will accelerate in 2024, "supporting above-census revenue growth for the industry." As a result, they forecast SNAP revenue growth to outperform as the demand drives industry-wide ad price increases. They also expect Amazon Ads expanding ambitions and partnerships to bolster SNAP advertising growth, lifting pricing power across the platform.

"Ultimately, we believe current consensus expectations underappreciate the pace of revenue growth in 2024 and beyond," said Guggenheim's analysts.

"Shares have significantly outperformed the NASDAQ index since 3Q earnings on October 24 as a more positive investor outlook has materialized (SNAP up 84% versus 16% for the NDX). However, we continue to see a favorable backdrop for sustained share outperformance."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.