Snap Inc. Explodes On Pivotal Research Stock Upgrade

12:22 06/07/2019

Snap Inc. SNAP  has been coming back swinging since seeing big losses in the past year. Snap shares have climbed more than 150% so far this year.

The parent company of Snapchat was also seeing big gains on Thursday after Pivotal Research said the company had “turned the corner” on a key metric.
Analyst Michael Levine has said that Snap is improving on user growth following its launch of a redesigned Android app earlier this year.

Levine upgraded the stock from 'hold' to 'buy,' citing that user momentum is one reason. Levine commented, 'We don’t want to miss the inflection point in the business, despite already strong year-to-date performance.'

'We think the latest launch of lenses is among some of the most impressive product innovation we have seen in some time from the company,” Levine wrote. The analyst said that this aspect of Snap’s business is “less appreciated based on our industry checks.'

“We continue to hear glowing things about the organization under Jeremi Gorman,” Levine wrote of Gorman, the company's new chief business officer. Gorman began his new position in late 2018 after spending years on Amazon's advertising team.

“That we are already seeing better focus on ad agency relationships and a category-focused sales team — exceptionally low-hanging fruit — suggests alignment is moving in the right direction,” Levine continued.

Levine also raised his price target on the stock to $17.25 from $13.25.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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