Snap Inc (NYSE: SNAP) is making a run for the top in the market this morning. However, the company hasn’t issued any press releases or filed anything with the SEC. So, what’s the deal?
The gains seem to be related to an analyst with a longtime bearish view changing his opinion with regard to the stock. Today, we’ll talk about:
- The updated analyst opinion;
- what we’re seeing from the SNAP stock as a result; and
- what we’ll be watching for ahead.
SNAP Gains On Analyst Change Of Heart
As mentioned above, Snap Inc is having a strong start to the trading session this morning after a long-time bear analyst had a change of heart. According to various reports, Richard Greenfield has had a change of opinion on the stock.
Richard Greenfield is a BTIG analyst that has been a bear on SNAP for quite some time. However, he changed his opinion, upgrading the stock from a neutral to a buy rating.
The analyst said that the change of heart is the result of an expectation of rising advertising income.
This is big news for SNAP and its investors. In fact, it’s the first time that Greenfield has had a buy rating on the stock since it went public.
The upgrade included a change to the price target. BTIG now sees the stock rising to $15 per share, a price target that represents about a 50% upside to the current price of the stock.
In a note, Greenfield had the following to offer:
We are increasingly confident that overseas direct response/performance advertisers are taking advantage of low relative bid prices on ad inventory in the US.
Moreover, the analyst no longer believes that SNAP represents a compelling short target.
Waht We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Snap, while the company didn’t issue any news of its own, the analyst news is exciting.
After all, when the stock launched, the analyst had a sell rating. Over time, he has slowly been softening his rating, and now, the opinion has switched to a positive one.
So, it’s not surprising to see that investors are excited, sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:31), SNAP is trading at $11.01 per share after a gain of $0.96 per share or 9.55% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SNAP. In particular, we’re interested in following the story surrounding the company’s continued growth in advertising and upcomming app relaunch for android devices. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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