SNAP - Snap and Pinterest Stocks Rise On Analyst Upgrade - Jefferies Lays Out Bull Case | Benzinga
Snap Inc (NYSE: SNAP) and Pinterest Inc (NYSE: PINS) stocks gained after Jefferies upgraded the stock ratings to Buy.
Analyst James Heaney upgraded Snap from Hold to Buy and raised the price target from $12 to $16.
The re-rating reflected his increasing optimism around recovery in the direct response (DR) platform.
Heaney's more optimistic view reflected recent improvements to the DR platform (70-75% of revenue), likely to drive better advertiser performance and faster budget growth.
The analyst saw early signs of the DR-driven turnaround, as last quarter's 11% Q/Q growth was the most rapid Q/Q Q3 growth since Q3 FY20. Heaney noted that North American revenue could grow in the mid-teens in FY24 (vs. -7% in FY23), as the rebuild of the DR ad platform had a temporary negative impact on large advertisers already reversing.
The decision ...