- Goldman Sachs (Goldman Sachs) said in a report on Monday that Snapchat’s parent company Snap Inc. will soar 45% as its product development drive exceeds expected revenue growth.
- Goldman Sachs reiterated its “buy” rating on Snap stock and set its target price at $7.
- Goldman Sachs’ notes helped Snap’s stock rise 11% in Tuesday’s trading.
- Watch the Snap deal live broadcast here.
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Goldman Sachs reiterated its “buy” rating on Snap in a report on Monday and set a price target of $70, which is 45% higher than Monday’s closing price.
The note helped Snap’s stock price rise 11% in Tuesday’s trading.
Goldman Sachs believes that Snap’s recent initiatives, including a number of technological innovations and product partnerships, coupled with a favorable macro context for online advertising, will “significantly increase the possibility of accelerated revenue growth and greatly exceed the consensus in the fourth and fourth quarters. prediction.”
Goldman Sachs pointed out that Snap is expanding its advertiser base, and user engagement on its shared platform continues to grow.
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Goldman said: “Snap’s Spotlight product, new campaign goals and bid types, and Unity partnerships are likely to further drive engagement growth and provide advertisers with valuable scale.”
In addition, Goldman’s channel inspections show that Snap will be able to exceed its own growth expectations.
“Our survey of advertisers and recent third-party application data indicate that despite the uncertain impact of the November election and the resurrection of COVID-related lock-in measures, the brand and direct response intensity continues into the holiday season, which will potentially increase The potential is pushed to 47. The management pointed out that if the holiday season is consistent with the same period in previous years, the year-on-year growth can reach -50%.”
Goldman Sachs added: “We now expect revenue to grow by 58% year-on-year, reflecting this advantage.”
As of Thursday’s close, Snap’s stock price has soared 196% so far this year.