Snap (NYSE: SNAP) stock was up by around 6% on Wednesday and up more than 20% from its 52-week low of $9.34 as Bank of America analyst Justin Post reiterated a Buy rating on the stock buoyed by the positivity in the leaked memo of Snap’s CEO, Evan Spiegel.
In a memo that was accessed by The Verge, Evan Speigel stated that Snap was aiming to generate revenues of $6 billion in 2023 and expected to grow its users by 30% to 450 million by the end of next year.
Post was of the view that “more favorable macro conditions” were needed to achieve these targets but added that “with August revenue growth at 12-15% estimated, Snapchat Plus is likely seeing better-than-expected traction, and easier revenue growth comps ahead, a material macro improvement may not be necessary to achieve Snap’s goals.”
The top-rated analyst also pointed out that SNAP’s ambitious revenue targets indicated that “advertisers are likely shown positive interest in Snap’s AR [augmented reality] technology.”
Is Snap a Hold or Sell?
Analysts are currently sidelined on the stock with a Hold consensus rating based on nine Buys, 23 Holds, and two Sells.
SNAP’s average price target of $14.07 implies that the stock has an upside potential of 22.7%