The stock was rising 2.79% in early trading on Thursday to $15.69 a share, representing a new high for the year.
"In May, Snap's 'gender-face-swap' filter went viral and SnapKit app 'Yolo' reached number 1 on the iOS download charts, and 3rd party Snap app data in 2Q suggests downloads were near record levels," Bank of America's Justin Post wrote in a note. Post said this will drive higher sales for the quarter.
Post raised his price target to $17 a share from $12, but kept his neutral rating, citing "high expectations." Snap shares have increased 177% so far this year, but are still down significantly from where they traded after their market debut in March 2017.
Post noted that high management turnover at Snap has hampered execution, and that Instagram remains a threat. The Facebook (FB) owned service service is seen by Snap investors as Snap's arch nemesis, as it copies Snap's user products like 'Stories' and steals users.