Snap and Pinterest Stocks Rise On Analyst Upgrade - Jefferies Lays Out Bull Case
Portfolio Pulse from Anusuya Lahiri
Snap Inc (SNAP) and Pinterest Inc (PINS) stocks rose following upgrades by Jefferies analyst James Heaney, who changed their ratings from Hold to Buy. Heaney increased SNAP's price target from $12 to $16, citing optimism about the direct response platform's recovery, which constitutes 70-75% of revenue. He expects mid-teens revenue growth in North America for FY24. SNAP's partnership with Amazon (AMZN) for on-platform checkout is seen as a positive move. For PINS, the price target was raised from $32 to $41, with expectations of 20%+ revenue growth in FY24. Heaney's revenue and EBITDA estimates for both companies are above the Street's consensus. SNAP shares were up 6.16% to $13.78, and PINS shares increased by 1.89% to $33.91.
November 30, 2023 | 8:39 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Amazon's partnership with Snap for on-platform checkout was highlighted as a positive development in Snap's analyst upgrade, which could encourage more ad spend on SNAP's platform.
While the news is primarily about SNAP's upgrade, Amazon's partnership is mentioned as a factor contributing to SNAP's positive outlook. This could indirectly benefit Amazon by showcasing its commitment to integrating with social media platforms, potentially leading to a slight positive impact on AMZN's stock in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Pinterest Inc's stock increased after an analyst upgrade from Jefferies, with a new price target of $41. The upgrade was based on strong Q3 results and the potential for 20%+ revenue growth in FY24.
The upgrade by Jefferies reflects confidence in Pinterest's revenue growth drivers and EBITDA margin potential. The analyst's estimates exceeding the Street's consensus could lead to increased investor confidence and a short-term boost in the stock price.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Snap Inc's stock rose after an analyst upgrade from Jefferies, with a new price target of $16. The upgrade was based on improvements to the direct response platform and a partnership with Amazon for on-platform checkout.
The upgrade by Jefferies is a strong positive signal to the market, indicating potential for revenue growth and improved advertiser performance. The partnership with Amazon is likely to be viewed favorably by investors, potentially leading to increased ad spend and further stock price appreciation in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90