Snap Inc. (NYSE: SNAP) shares rose 8.9 percent on Tuesday after Barclays’ analysts had upgraded its rating to overweight from equal weight and raising its price target from $11 to $18, or a 32.6 percent increase from Monday’s closing price of $13.57.
Barclays’ analysts, Ross Sandler said that the social media company could have a turnaround next year. Sandler believes that Snap will begin to match or even surpass analysts’ consensus estimates for its financial results beginning in fiscal year 2018 as the company’s growth rate begins to grow.
“We think the worst is behind SNAP and the company is likely to get back on track in 2018," Barclays said.
Sandler also says that Snap could now benefit and co-exist with Facebook like Priceline and Expedia, considering Facebook was one of Snap’s biggest competitors.
Snap has begun to reshape its interface to differentiate itself from its other social media platform competitors like Instagram and Facebook. Evan Spiegel, CEO of Snap, wanted to change the generic scrolling down the feed to a horizontal swipe and an organized feed for users.
Although, Barclays upgrades its price target to $18, it is still down 40 percent since its initial public offering launch back in March when shares hit its all time high of $29.44.