A favorable opinion from analysts at MoffettNathanson was obtained by Snap Inc. (SNAP), which owns the social network Snapchat. The news was the driver of more than a 2 percent rise in SNAP shares in the trading session on January 15. The stock ended trade at $50.31.
MoffettNathanson upgraded the recommendation from “Neutral” to “Buy” and raised the price target from $39 to $57. The stock recently received another positive rating from Goldman Sachs which also increased the target price from $47 to $70. Several variables will lead to Snapchat’s growth, according to experts. First of all, the introduction of new services, such as Spotlight, which highlights the most fascinating photographs, and Lens Lab, an instrument for the development of elements of augmented reality (AR).
Partnerships are a good influence on Snapchat. The company was able to incorporate 3D ads into its platform through a partnership with Unity Software (U). Moreover, Unity is a common tool for smartphone gamers, and on its website, Snapchat is now creating gaming apps.
Analysts expect that Snap will be able to exceed expectations for sales and earnings in the fourth quarter. Note that the company’s sales rose by 52 percent in the third quarter, to $679 million.
One of the beneficiaries of the boycott that big advertisers declared on Facebook last year was Snapchat’s advertisement company. Furthermore, smaller firms, dissatisfied with the promotional policies of the biggest social network, started buying advertisements on Snapchat. Thus, Snapchat will sustain its position as one of the most desirable advertiser platforms in the coming year, especially as it remains a popular social network with a large-paying audience aged 18-34 years. The long-term outlook for Snapchat is backed by solid positions in the advertisement industry, the launch of emerging technology, overall economic recovery, and profitable cooperation.
