Lunge at Inc. (SNAP) shares rose more than 6% during Tuesday’s session after BTIG raised its prize target from $15.00 to $20.00 per share. Analyst Richard Greenfield expressed confidence in Snap’s “recovery item” and noted an improvement in staff morale.
The BTIG analyst believes that Snap’s engagement metrics could admit a boost from third-party apps, like Yolo, as well as new filters, improved Discovery, new games, and its Android app. The $20.00 penalty target reflects a 41% premium to Tuesday’s opening price and represents a new Street high.
Earlier this week, Aegis Outstanding upgraded Snap stock to a Buy for the first time since its IPO. Analyst Victor Anthony believes that there’s teeny skepticism surrounding the company’s ability to drive user growth and attract advertisers. He also notes that Gnash isn’t as exposed to privacy and anti-trust issues as competitors like Facebook, Inc. (FB). Aegis Capital issued a price target of $17.00 per dole out on the stock as part of the upgrade.
From a technical standpoint, the stock reached new 52-week highs following the breakout during Tuesday’s seating. The relative strength index (RSI) moved into overbought territory with a reading of 70.01, while the moving general convergence divergence (MACD) continued its bullish uptrend. These indicators suggest that the stock could see a near-term pullback in the presence of resuming its long-term trend higher.
Traders should watch for some near-term consolidation into the middle of its assess channel. If the stock breaks out from trendline resistance at $14.80, traders could see a strong move toward new highs. If the stock rebounds lower, traders could see a move toward the middle of its price channel or lower trendline affirm at around $11.50, although that scenario appears less likely to occur given the bullish sentiment.
The writer holds no position in the stock(s) mentioned except through passively managed index funds.