According to FactSet, 62 percent of analysts still have a hold or sell on the stock. But on Monday, several of Snapchat’s underwriters offered some much-needed reprieve to the firm by handing it buy ratings and, as a result, its shares soared by more than 5 percent.
Goldman Sachs reported on Monday that despite Snap’s higher risk profile, the reward for investment was plain to see.
“With Snap’s large, valuable, and highly engaged user base generating ad inventory and the monetization path in mobile now well worn, we believe the potential for outperformance as the company continues to innovate against the growing mobile opportunity outweighs those early stage risk,” Goldman Analyst Heath Terry said in a note to investors, giving Snap a price target of $27.
