Snap (SNAP) - Get Report shares jumped on Thursday after analysts at Evercore placed Snapchat's parent on its Tactical Outperform list and after peer social-media major Facebook posted strong earnings.
Evercore also raised its price target on Snap, the Santa Monica, Calif., parent of the graphics-focused social-media site, to $57 a share from $42.
Snap shares at last check were up 9.5% to $53.59.
"We’ve heard resoundingly positive comments from advertiser contacts about the performance of Snap ads throughout the holiday season," said analyst Kevin Rippey.
"Layer this on to the strength of the broader ad market in the fourth quarter, and the path to 70% year over year is a distinct possibility."
The firm says Snap should trade as a function of 2025 revenue estimates due to more analyst consensus about long-term margins.
"While user-growth trends can’t be ignored, based on our conversations with investors, there’s a fairly broad range of check-the-box outcomes on this front," Rippey said.
Snap was also benefitting from bullish news across the social-media landscape with rival Facebook reporting strong fourth-quarter results and Twitter (TWTR) - Get Report being the subject of a separate bullish note from Keybanc.
"Our view" on the microblogging site Twitter "is that execution is improving, and the combination of a cyclical ad recovery and new products creates potential for revenue to outpace our above-consensus revenue estimates in 2021 and 2022," Keybanc wrote in a research note.
KeyBanc expects Twitter revenue to rise by more than 20% annually.
Facebook shares were 0.5% higher at $273.50 while Twitter shares jumped 6.9% to $51.49.