(CercleFinance.com) – BofA renewed its buy recommendation on Snap on Tuesday, with a price target of $22, the day after the social media announced the gain of one million subscribers for its new Snapchat+ paid service.
The broker says he is encouraged by this “surprise” success, which could represent some $12 million in additional revenue in the third quarter alone, then $200 million in additional revenue in 2023.
However, he explains, if the market has been able to integrate the risks associated with the activity of the group of Santa Monica (California), it does not take into account the potential good news, he assures in a note .
“We see the possibility that Snap’s growth will pick up speed again if consumer online spending stabilizes, on a more favorable basis for comparison, and as the monetization of new formats takes off (Spotlight, Maps)’, he concludes.
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