SNAP stock is soaring on Thursday following an upgrade for Snap (NYSE:SNAP).
The upgrade to SNAP stock comes from BTIG analyst Richard Greenfield. This upgrade has the analyst taking the stock from its previous rating of “Neutral” to a new rating of “Buy.” It also comes with a new price target of $15, which is a massive jump from his previous price target of $5.
SNAP stock getting an upgrade and a higher price target is great news, but there’s more to it than just that. Richard Greenfield has had a strong bearish position on SNAP ever since the company went public. His previous price target of $5 was also the lowest among analysts covering the stock. This makes his change in position all the more impactful, reports MarketsInsider.
It is also worth noting that the new price target of $15 for SNAP stock is above its closing price on Thursday. SNAP stock was sitting at $10.05 when the markets closed yesterday. That means that Greenfield is expecting about a 50% upside for the stock.
The reason behind the upgrade for SNAP stock from Greenfield has to do with advertising revenue. The analyst says that he is expecting the company to see an increase in ad revenue. This is due to overseas advertisers taking an interest in low ad prices in the U.S.
While all of this is good news for SNAP stock, there are still some concerns that investors should be aware of. InvestorPlace’s own Ian Bezek goes overs why the stock is still a strong sell at the moment.
SNAP stock was up 10% as of noon Thursday and is up 73% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.