The tide may finally begin to turn for shares of Snap , according to JMP Securities. Analyst Andrew Boone upgraded the Snapchat parent company to market outperform from market perform, citing the app’s planned redesign. The overhaul, which includes artificial intelligence tools , was unveiled last month. “With Snap set to roll out Simple Snapchat and launch Sponsored Snaps, we see an inflection in impression growth as we believe the company can grow U.S. and North American engagement and drive greater ad load with its new ad products,” he wrote. SNAP YTD mountain Shares in 2024 Snap shares have struggled this year, plummeting 41%. But the declines may be nearing its end. The stock rose more than 2% before the bell. The analyst also assigned a $17 price target on shares, implying 70% upside from Tuesday’s close. Boone thinks that price target is warranted given the “product catalysts” posed by the revamp and better advertising performance as the company improves its product offering. “While we acknowledge we certainly could be a quarter early given the uncertainty around the timing of the rollout of these products and early reaction from users, we generally like product-led growth initiatives and find valuation compelling at 15.5x 2026E EBITDA,” Boone said.
