Source: Unsplash
Goldman Sachs analyst Heath Terry raised the firm's price target on Snap to $70 from $47 and reiterates a Buy rating on the shares.
Since its quarterly results in October, Snap has announced a number of tech innovations and product partnerships that, along with the "favorable" macro backdrop for online advertising, increase the likelihood of revenue growth acceleration "well beyond" consensus forecasts in Q4 and beyond, Terry tells investors in a research note. The analyst believes Snap's Spotlight product, new advertising campaign objectives and bid types, and the Unity partnership have the potential to drive "further momentum in engagement growth as well as provide valuable scale to advertise."
Further, recent ad checks and third party data suggest outperformance relative to the company's initial guidance for Q4, adds Terry.
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