Susquehanna analyst Shyam Patil upgraded Snap (SNAP) to Neutral from Negative and boosted his price target for the shares to $18 from $12. The stock closed Monday down 24c to $15.76.

The analyst's recent advertising channel checks have suggested that Snap's "solid" growth has continued in Q3 with expectations for continued progress in Q4. The checks also show that Facebook's (FB) Instagram Stories "has lowered barriers" for SNAP Stories adoption, Patil tells investors in a research note.

The analyst, who also expect Snap's net addition momentum to continue in the second half of 2019, says the stock's valuation is keeping him from getting even more constructive.