Snap Inc (NYSE:SNAP) shares surged more than 10% on Tuesday after Barclays reported that ‘turning point’ is approaching in 2018. Barclays had also upgraded Snap stock to “Overweight” from “Equal Weight.”
The investment bank increased its price target to $18 per share from $11 per share, implying a 32.7% upside from the current levels. Barclays analyst Ross Sandler stated that they have stayed on the sidelines on Snap since the Initial Public Offering, however now consider is a good time to begin accumulating shares.
The company may start meeting or surpassing consensus revenue projections and accelerating growth next year now that the pricing transition reaches late stage. Sandler also reported that the company could gain from a story change away from this year’s Facebook, Inc. (NASDAQ:FB) is killing Snap to these firms can co-exist like Expedia and Priceline Group. Snap shares have declined almost 45% since going public in March, as the firm has failed to come at part with investor expectations. Increasing pressure from Facebook has added to poor performance of the stock.
Snap engages in the business of its camera platform that assists users to communicate through images and short videos. The firm is also involved in the facility of advertising by assisting its associates generate a return on their investment by advancing engaging advertising products. Its offerings comprise Publisher Tools, Spectacles and Snapchat.
The firm was established by Evan Thomas Spiegel, Robert C. Murphy and Frank Reginald Brown IV in July 2011 and has headquarters in Venice, CA. It was initially named Snapchat Inc. and later was rebranded as Snap Inc. in September 2016. This change was done in order to comprise the Spectacles product under an exclusive single firm. Snap monetizes its operations mainly through advertising. Its ad products comprise Snap Ads as well as Sponsored Creative Tools including Sponsored Geofilters, Sponsored Lenses and measurement services.