JPMorgan upgrades 'increasingly compelling' Snap to Overweight from Neutral
JPMorgan analyst Doug Anmuth upgraded Snap to Overweight from Neutral with a price target of $20, up from $17. The stock in premarket trading is up 2% to $14.33. Following a 20% pullback from recent highs and last night's Q3 results that "showed more encouraging trends," Snap shares are "increasingly compelling," Anmuth tells investors in a research note. The analyst believes Snap's platform and business have both "improved dramatically over the past several quarters." Daily active users have now increased for three straight quarters, accelerating to 13% growth in Q3, while daily time spent continues to run at 30-plus minutes per user, Anmuth points out. Further, the analyst thinks Snap is at an "inflection point" with positive EBITDA for the first time in Q4.