Snap Inc (NYSE:SNAP) has had a much-maligned start since the stock began trading in early March. Nevertheless, the Snapchat stock has turned in a positive session in seven out of the last eight days -- pacing toward another win today -- and upbeat analysts are starting to chime in.
Overnight, SNAP received an upgrade to "overweight" from "equal weight" at Barclays, as well as a price-target hike to $18 from $11 -- representing expected upside of 33% to the stock's closing price of $13.57 yesterday. The brokerage firm expects the company to at least match revenue expectations next year amid "accelerating growth." Additionally, Barclays said it believes "the worst is behind SNAP," and that it's "a good time to start accumulating the shares."
Today, SNAP shares are up 5.8% to trade at $14.35, shooting past their 100-day moving average for the first time since a Nov. 8 earnings-induced bear gap. Longer term, SNAP has shed 16% since its March 2 initial public offering (IPO) price of $17, but remain well above its record low of $11.28 on Aug. 14.
Should the security continue its recent rebound, a short squeeze could provide more fuel for SNAP's run. Short interest increased by 6.8% during the last reporting period to 122.67 million shares, an all-time high. This represents a healthy 10.3% of SNAP's total available float.