Snap, the parent company of Snapchat, has a significant upside potential, according to Goldman Sachs analysis, with Goldman saying on Monday that it has re-rated Snap’s stock market share and set a $70 target for its share price, indicating that its stock could rise by 45% from Monday’s closing price, the note helped Snap shares grow 11% in Tuesday’s trading.
Goldman believes that the company’s recent initiatives, including technology innovations and product-selling partnerships, combined with a broad background of work suited to online advertising, will increase the potential for an acceleration of revenue growth beyond expectations for the fourth quarter and beyond.
Snap is expanding its advertiser base as user engagement continues to grow on its platform, and Goldman channel checks indicate that Snap will be able to exceed its growth expectations.
Goldman added that he expects the company to enjoy 58% year-on-year revenue growth, reflecting its strength.
Overall, Snap shares are up 196% in a till year to Thursday’s Tadawul market close.