Pivotal Research analyst Brian Wieser upgraded Snap (SNAP) to Buy from Hold while lowering his price target for the shares to $8 from $9. The stock closed yesterday up 22c to $6.81.

The analyst says that despite declining usage and liquidity, the data he looks at is showing a "widening user base, although one which is collectively reducing its time on the platform." It is not too late for management to find ways to reverse recent usage trends and generally improve monetization regardless of those usage trends, Wieser tells investors in a research note.

Further, the analyst believes Snap could become an attractive candidate to go private with the stock's price at current levels. Wieser views Snap's risk/reward as favorable following the recent selloff.