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Deutsche Bank Upgrades Snap to Buy, Raises Price Target to $19

Deutsche Bank analyst Benjamin Black upgrades Snap (NYSE:SNAP) from Hold to Buy and raises the price target from $10 to $19. ey factors contributing to DB’s optimistic outlook include the expected revenue boost from Snapchat+, at platform rebuild, Snap’s partnership with Amazon (NASDAQ:AMZN), and the inbound advertising from China. “Recent ad checks give credence to a successful ad platform rebuild at SNAP, evidenced by growing purchase-related conversions, which, we believe supported a second sequential quarter of ad-spend acceleration from 3Q23 to 4Q23, and potentially a continued acceleration into 1Q24,” analysts wrote. The bank sees a promising growth path for SNAP, with easier year-over-year comparisons and a boost from Snapchat+ revenue. However, they caution about competition from TikTok and the potential impacts of SNAP's shift towards more lucrative users, which might slow down user growth. “That said, we increase our 2024/25 revenue and 2024/25 EBITDA estimates by 5%/6% and 38%/20%, respectively,” the note says. Along these lines, the team raised the target price for SNAP from $10 to $19, implying over 17% upside from Thursday’s closing price. Deutsche Bank upgrades Snap to Buy on several strong catalysts.



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