Snap stock jumps 4.3% premarket after Goldman raises price target to $70 from $47

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Goldman Sachs raised its price target for Snap Inc. stock to $70 from $47 on Tuesday and said it expects the company to achieve faster revenue growth in the fourth quarter and beyond than consensus. Since Snap reported earnings in October, the company has announced a number of tech innovations and partnerships that will blend with an improving macro-economic backdrop, said analysts led by Heath Terry. “Snap’s Spotlight product, new ad campaign objectives and bid
types, and the Unity partnership, particularly Unity Ads’ inclusion
into the Snap Audience Network (SAN), have the potential to drive
further momentum in engagement growth as well as provide
valuable scale to advertisers,” the analyst wrote in a note to clients. “In addition, our recent ad checks as well as 3rd party data suggest outperformance relative to the company’s initial guidance for 4Q, acceleration we believe is sustainable beyond the current quarter.” Goldman rates the stock a buy. Shares jumped 4.3% premarket and have gained 77% in the year to date, while the S&P 500 has gained 16%.
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