Getty/Michael Kovac
Snapchat CEO Evan Spiegel speaks onstage during 'Disrupting Information and Communication' at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 8, 2014 in San Francisco, California.
- Snap shares have more than doubled this year from their sub-$5 price last December.
- Ahead of the Snapchat parent company's first-quarter earnings due out after Tuesday's closing bell, Wall Street analysts are telling clients things have gotten better - but not good enough.
- Watch Snap trade live.
Snap shares have been through the ringer.
In the little over two years that Snap has been a public company, its stock has been in an almost constant freefall amid stiff social-media competition and a string of executive turnover - until last December, when shares bottomed out with the rest of the market. It has booked a meteoric 110% rise this year.
Now, ahead of the self-proclaimed camera company's first-quarter earnings report, due out after Tuesday's market close, analysts are telling clients that the picture looks stronger than previous quarters, but that there's still work to be done as far as solidifying a turnaround.
"Encouraging momentum but the comeback kid is not out of the woods yet," Jefferies analysts led by Brent Thill, who carry a "hold" rating and $11 price target, wrote to clients on Monday.
And JPMorgan analysts led by Doug Anmuth expressed a similar sentiment in their note to clients on Sunday, saying "things are getting better," while reiterating their "underweight" rating and $7 price target.
Anmuth and his team were particularly encouraged by what they view as Snap's management team becoming "operationally stronger," with the company trying to maintain the "increased discipline installed by short-lived CFO Tim Stone."
Stone's departure in January, the second by a Snap CFO in eight months, was seen as a significant loss for the company. It led to an immediate 10% drop in shares.
Read more: Snap's New Guard: Meet the new power players who help CEO Evan Spiegel run Snap Inc.
When Snap reports on Tuesday, analysts will be focusing on the number of daily active users, as well as the company's second-quarter guidance. In its last quarterly report, Snap reported a smaller-than-expected loss and better-than-expected revenue.
At least one firm was particularly optimistic heading into the report. Stephen Ju, an analyst at Credit Suisse, upped his price target on Monday from $10.50 to $13 a share, calling Snap a "scarce asset that offers advertisers access to a coveted younger demographic." Shares were trading just below $12 on Monday.
Wall Street is overwhelmingly cautious to bearish on the name. Of the analysts polled by Bloomberg, 25 have a "hold" rating, eight say "sell," and five suggest "buy." Analysts are expecting an adjusted loss of $0.12 a share on revenue of $307.4 billion.
Here's a snapshot of what other Wall Street analysts are saying about Snap's shares ahead of the report: