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Snap Inc (NYSE: SNAP) has already doubled over the past four months but a Deutsche Bank analyst is convinced it still has more room to the upside.
Snap stock should be worth $19
Benjamin Black upgraded the social media company to “buy” this morning and raised his price objective to $19 that suggests about a 17% upside from here.
The analyst told clients in a research note today that better advertising trends are expected to help Snap stock move further up in the coming months.
Recent ad checks give credence to a successful ad platform rebuild at Snap, evidenced by growing purchase-related conversions, which, [will] support continued acceleration [in ad-spend] into 1Q24.
Snap Inc. will report its first-quarter financial results on February 6th. Consensus is for it to lose 16 cents a share versus 8 cents per share a year ago.
Snapchat+ will help boost revenue
Benjamin Black expects Snapchat+ to deliver a meaningful boost to revenue in the quarters ahead. The premium offering now has over 7.0 million subscribers worldwide.
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The Deutsche Bank expert is confident that Snap stock will also benefit from a social shopping deal the Nasdaq-listed firm announced with Amazon.com Inc in November of 2023 as Invezz reported here.
Note that the eCommerce giant now spends some $20 billion a year on advertising. Other reasons cited for the positive view on $SNAP include easier comps moving forward.
Black raised his 2024 revenue and EBITDA estimates for Snap Inc by 5.0% and 38%, respectively, on Friday.
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