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Snap Hits Three-Year High on Optimism Over New Features

Snap Hits Three-Year High on Optimism Over New Features

Snap Inc. shares climbed for a seventh straight session on Monday, with the stock extending a recent rally and hitting a three-year high as optimism over the social-media company continued to grow.

In the latest positive call, MKM Partners raised its price target to $26 from $18, matching the highest on the Street. The firm reiterated its buy rating and cited Snap’s recent developer conference, where it announced a number of new products and features.

Analyst Rohit Kulkarni was “impressed by new features” announced at the conference, and wrote that Snap was “setting itself apart from its peers on being the go-to platform to create, view, integrate, and monetize Augmented Reality experiences.” He added that he has “greater confidence” in the company over the near term, also citing “reports on advertising market recovery since April”

Shares gained as much as 2.2% and were trading at their highest level since May 2017. The company, which owns the Snapchat social network, has rallied nearly 180% off a March low.

Snap Hits Three-Year High on Optimism Over New Features

MKM was the latest firm to cite the conference as a positive catalyst for the stock. Last week, UBS raised its own price target, writing that Snap was “among the most innovative companies in terms of evolving products,” and adding that “should continue to drive strong consumer engagement & monetization via advertising.”

Other analysts have also touted the improved monetization potential as a result of new features and products.

©2020 Bloomberg L.P.