Snap shares touch a two-month high on Tuesday, stock upgraded to “Buy” at Guggenheim

Guggenheim on Tuesday raised its rating on Snap Inc (SNAP) from “Neutral” to “Buy”, as the firm cited “strong usage trends” among other factors, which could support higher advertiser demand.

Snap shares closed lower for the third time in the past ten trading sessions in New York on Tuesday. It has also been the steepest daily loss since September 16th. The stock went down 0.47% ($0.08) to $17.04, after touching an intraday high at $18.17, or a price level not seen since July 26th ($18.36).

Shares of Snap Inc have risen 209.26% so far this year, following a 62.29% drop in 2018.

“We believe SNAP is well positioned to outperform our Internet and Media coverage universe through year end and provide an investor return of nearly 30% over the next 12 months,” Guggenheim analysts wrote in a note to clients, cited by CNBC.

“The combination of strong usage trends, industry-leading access to 18-34 year-old users and platform improvements should drive growth in advertiser demand. We see long-term revenue potential at SNAP as the most under-appreciated in our universe which should support a sustained premium valuation multiple.”

Analyst stock price forecast and recommendation

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Snap Inc’s stock price, have a median target of $18.00, with a high estimate of $24.00 and a low estimate of $11.00. The median estimate represents a 5.63% upside compared to the closing price of $17.04 on September 24th.

The same media also reported that 25 out of 40 surveyed investment analysts had rated Snap Inc’s stock as “Hold”, while 12 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.