Barclays analyst Ross Sandler upgraded Snap (SNAP) to Overweight from Equal Weight and raised his price target for the shares to $18 from $11. The stock closed yesterday down 30c to $13.57.
With the company’s pricing transition in the later stages, Snap may start hitting or exceeding consensus revenue estimates and accelerating growth in 2018, Sandler tells investors in a research note. He thinks the investor narrative in 2018 can change from Facebook (FB) “is killing” Snap to “these companies can co-exist” like Priceline (PCLN) and Expedia (EXPE). Further, Sandler highlights Snap’s high short interest relative to peers, especially considering its founders own around 50% of the shares.
The analyst feels now is a good time to start accumulating Snap.
