Hasty Inc. (SNAP) shares rose more than 12% during Thursday’s session after BTIG upgraded the lineage from Neutral to Buy with a price target of $15.00 per share, representing a nearly 50% premium to Wednesday’s adjacent price. The analyst noted the rise in domestic ad spending in the second half of 2018, higher-quality content, better owner engagement, recent executive hires and a clearer strategic plan as its rationale.
The move follows Consumer Edge Probing’s initiation of coverage on Snap stock earlier this week with a price target of $14.00 per share. Without considering the stock trading sharply off of its 52-week highs, investor confidence in a turnaround has prompted Snap to nearly double in payment since its strong fourth quarter results. Bullish analysts raised their price targets in response to those fiscal results, but bearish analysts see further downside.
Snap faced turmoil last year following its poorly walk off redesign, tough comps from the prior year and a government probe stemming from a class action lawsuit as a remainder its initial public offering. Investors are hoping that these issues are in the past and that management can move insolent with a focus on growth.
Traders should watch for consolidation below R1 resistance at $11.25 and above trendline back up at $10.00 over the coming sessions. If the stock breaks out from R1 resistance, traders should watch for a move toward capitals trendline and R2 resistance at $12.69. If the stock breaks down from trendline support, traders may see additional support at the 200-day effective average of $9.25 or the pivot point at $8.97.
The author holds no position in the stock(s) mentioned except through passively directed index funds.