Snap just upgraded at Wells Fargo, here’s why

Wells Fargo analyst Ken Gawrelski upgraded Snap to Overweight from Equal Weight with a price target of $22, up from $8. The analyst sees advertising positively inflecting at Snap for first time since Apple’s privacy initiatives in April 2021. The company’s reinvestment in advertising tech stack, new ads management and renewed focus leads to increased estimates materially above the Street, the analyst tells investors in a research note. Wells believes changes made over the past several months have meaningfully narrowed Snap’s ad product gap relative to other audience platforms. It views Snap’s recent product and ads leadership makeover as key to faster product innovation and revenue reacceleration.