- Goldman Sachs Bank said in a note on Monday that its parent company, Snap Inc. , Snap Inc. It will rise 45% as its product developments drive revenue growth faster than expected.
- Goldman reiterated his buy rating on Snap stocks and set a target price of $ 7o for the company.
- Goldman’s banknote helped an 11% rise in Snap shares in trading Tuesday.
- Watch SnapChat directly here.
Parent Snapchat Snap Inc. There is much room to the upside if an analysis from Goldman Sachs proves correct.
In a note on Monday, Goldman reiterated its buy rating on Snap and set a target of $ 70, which is a potential 45% hike from Monday’s close.
The note helped boost Snap’s shares to 11% in Tuesday’s trading.
Goldman believes that recent initiatives from Snap including a number of tech innovations and product partnerships, along with a favorable macro background for online advertising, will increase the likelihood that revenue growth will accelerate beyond the consensus forecast in the fourth quarter and beyond, according to the note.
Goldman noted that Snap is expanding its advertiser base and user engagement on its platform continues to grow.
“Snap’s Spotlight product, new ad campaign goals, bidding types, and unit partnership have the potential to drive momentum in engagement growth as well as provide a value spectrum for advertisers,” said Goldman.
Moreover, Goldman Channel scans indicate that Snap will be able to exceed its growth forecast.
“ Our checks with advertisers, along with recent third-party app data, indicate that the brand and the strength of direct response continued into the holiday season despite uncertainty about the impact of the November elections and the resurgence of COVID-related lockdowns, leading to Potential rise to 47, Goldman said the annual -50% growth indicated by management would have been possible if the holiday season had materialized in line with previous years.
“We now expect revenue growth of 58% year over year, which reflects this strength,” Goldman added.
Snap shares are up 196% year-to-date through Thursday’s close.
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