Shares of Barclays were rapidly gaining in Tuesday trading after a Barclays analyst said that the worst was behind the company.
Snap Inc. shares jumped Tuesday, after analysts at Barclays expressed confidence in the company’s revenue and user growth trajectories going forward.
Barclays analysts lead by Ross Sandler have said, “We think the worst is behind Snap and the company is likely to get back on track in 2018.”
The company is redesigning its Snapchat app and according to the firm, “Snap is making the right moves around an innovation yet you can’t see it in their results because of the negative price impact from the transition to auction.”
Barclays has lifted its price target from $11 on the stock to $18.
Shares of Snap have been struggling since the stock went public but has seen its eight gain in nine sessions on Tuesday. It has rallied 20.7% since November 21st.
The team also wrote, “Allocating each side of the app based on user intent, and algorithmic ranking of content, may help engagement as users will now see stories that they are most interested in at the top of each page.”
“In short, Snap might be in a position to accelerate daily-active-user growth by 2H18 and we are willing to take the leap ahead of that,” Sandler wrote.
Disclaimer: We have no position in Snap Inc. (NYSE: SNAP) and have not been compensated for this article.