- Snap (NYSE:SNAP) is up 2.5% premarket after getting a higher price target from Credit Suisse (SIX:CSGN), which is bumping user estimates and expects CPMs are stabilizing and even increasing slightly.
- The firm raised its target to $20 from $17, implying 39.5% upside from yesterday's close, and analyst Stephen Ju increased his estimates for North American daily active users -- to about 3.2M sequential adds, from a previous 1.5M.
- Longer term, the firm has an Outperform rating resting on three factors: "(1) we believe SNAP shares at current levels are now exhibiting asymmetric risk/reward to the upside, with downside risk of ~6% in our Grey Sky scenario and upside potential of ~39% to our target, (2) it is a scarce asset that offers advertisers access to a coveted younger demographic; and (3) Snap is a margin expansion story with revenue CAGR exceeding cost of sales CAGR."
- Now read: Daily Insider Ratings Round Up 10/4/17: SNAP, MRIN, SOR
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