Snap is rallying after Credit Suisse raises its price target
- Credit Suisse maintained its "Outperform" rating and raised its price target for Snap.
- Shares are up more than 3% Friday.
- Watch Snap trade in real time.
Snap is trading higher by 3.44% Friday and on track to close at its best levels of April after Credit Suisse maintained its "Outperform" rating and increased its price target to $22 from $21.
"Our longer-term investment thesis remains predicated on the following points: (1) we believe SNAP shares at current levels are exhibiting favorable risk/reward, (2) it is a scarce asset that offers advertisers access to a coveted younger demographic; and (3) Snap is a margin expansion story with revenue CAGR exceeding cost of sales CAGR," analyst Stephen Ju said in a note to clients sent out on Friday.
Shares tumbled more than 35% from their February high of $21.22 amid worries surrounding the redesign of the company's Snapchat app and as pressure on the social media space surfaced in the wake Facebook's Cambridge Analytica data scandal.
In what may be an encouraging sign for Snap bulls, shares have held key support near $14 throughout the month of April.
Snap is expected to report its first-quarter results on May 1. Wall Street analysts surveyed by Bloomberg are expecting an adjusted loss of $0.17 a share on revenue of $243.7 million.
Snap shares are up about 5% this year.
