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Snapchat's parent company may have been a punch for financial newspapers last year, but Break (NYSE: SNAP) The stock turnaround has now more than doubled this year, reaching this juicy milestone Thursday afternoon after an upgrade by a welcome analyst.
Rich Greenfield of BTIG on Thursday improved its neutral rating on the Snap stock. He believes that advertisers' offers to get their marketing missives on Snapchat have started to increase in recent months. Since its application was unpopularly updated more than a year ago, Snapchat has had some difficulty increasing its audience, but it remains a place of choice for advertisers who want to reach millennia without worry about traditional media. His price goal of $ 15 suggests that there is a lot of potential beyond the hot start of this young year.
Source of the image: Snap.
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Greenfield is not the only Wall Street professional to have a more optimistic outlook on Snap these days. Consumer Edge started hedging the stock with an overweight earlier this week. Brent Thill also raised his goal on the $ 9 to $ 11 headline after meeting with Snap's management. It still maintains its stock holding rating, but it is encouraging to propose its marker for it to correspond to the recent rise in shares instead of downgrading the valuation. Thill thinks Snap is at the beginning of a recovery, but he is impressed by the steps he's taken to entice his partners, monetize the platform and recover the users' engagement.
Snapchat continues to attract a crowd. Growth seems to have stopped – its 186 million active users in the fourth quarter are essentially stable with the 187 million that it served a year ago – but there are things much worse than simply walk in place. The enhancement of Snap's monetization skills still resulted in a 36% higher revenue growth than expected, driven entirely by a 37% increase in average revenue per user.
Snap remains far from perfect. It continues to lose a lot of money, and the redesign of the Android application, expected to materialize by the end of the year, matters a lot. We saw what happened the last time he decided to radically change his platform – it was not pretty – but this time, a smarter team of Snapchat gets the hang of correcting the mistake made almost two years ago.
Snap Stock is still a broken IPO. He will have more than triple this year to get his starting price of $ 17. However, with momentum on its side – for a change – it's hard to bet against Snapchat's parent company now.
Rick Munarriz has no position in the mentioned actions. The Motley Fool has no position in any of the actions mentioned. Motley Fool has a disclosure policy.
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