Snap’s (SNAP) revenue estimates for 2024 and 2025 were increased by about 4% and 6% respectively by Morgan Stanley, according to a note from the investment bank.
Morgan Stanley pointed to improving near-term advertiser performance and conversions, China-based advertiser spending and Snap’s partnership with Amazon.com (AMZN).
“The partnership highlights an opportunity for Snap to have more commerce oriented ads that could drive higher conversion and pricing,” the investment bank said.
Morgan Stanley also said that artificial intelligence is another tailwind that could provide further upside for Snap, noting the company’s investment in AI tools to enhance organic and paid content targeting and attribution.
Morgan Stanley raised Snap’s price target to $13 from $7 while keeping its underweight rating, saying that the stock has overshot over how quickly the platform will turn.