Snap’s shares jumped 12 percent Thursday, reaching a six-month high after a high-profile upgrade from a Wall Street analyst.
BTIG’s well-known Snap bear Rich Greenfield changed his recommendation from “neutral” to “buy” and upgraded his price target from $5 to a Street-leading $15 — representing what would be a 50 percent increase from the stock’s Wednesday price of just over $10.
“Virtually everything that could go wrong for Snapchat over the past couple years since going public has gone wrong,” Greenfield wrote, referring to the disastrous redesign that was panned by famous users like Kylie Jenner.
Still, Greenfield said advertisers see the platform as a worthy place to spend their money, and believes the social network is in a good position for success.
“Performance advertisers are laser focused on return on investment and spend where they see a compelling return,” he wrote.
“We are increasingly confident that overseas direct response/performance advertisers are taking advantage of low relative bid prices on ad inventory in the US”
Snap shares climbed $1.23, to $11.28.