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Snap Pops as Wall Street Sees User Growth Boosting Ad Sales

Investing.com – Snapchat owner Snap jumped on Thursday after Wall Street turned bullish on the social media company on expectations it will attract meaningful ad spend in the coming year thanks to an uptick in user growth.

Cowen upgraded Snap to outperform from market perform and raised its price target on the stock to $20 from $16. Snap (NYSE:SNAP) jumped 4%.

Citing its survey of ad buyers, Cowen said many are "considering SNAP for new P13-34 branding campaigns" in 2020, raising the prospect for higher ad sales at a time when ad pricing is stabilizing.

The bullish call from Cowen echoed an upgrade from Jefferies on Snap to hold from buy amid signs of "accelerating user growth."

Snap is set to report its fourth-quarter and fiscal 2019 earnings after the closing bell on Feb. 4.

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