Atlantic Equities upped its rating to "overweight" from "neutral"
The shares of Snap Inc (NYSE:SNAP) are up 4.5% at $56.52 this morning, buzzing on analyst praise. Specifically, Atlantic Equities lifted its rating to "overweight" from "neutral," citing strength in its ad business and pipeline products, which could help grow revenue.
Atlantic Equities joins an already bullish brokerage bunch. Prior to today's coverage, 21 analysts considered SNAP a "buy" or better, while six said "hold" or worse. Plus, the 12-month consensus price target of $74.03 stands at a 36.8% premium to current levels.
The security seems to be bouncing back from the selloff it suffered from late-February through March, with support at the 120-day moving average providing a springboard late last month. The stock will still have to contend with pressure at the 20-day moving average, though, which has acted as a ceiling on the charts for nearly three weeks. Year-over-year, SNAP is up 345%.
Premiums on SNAP are still relatively inexpensive, as the equity's Schaeffer's Volatility Index (SVI) of 60% sits in the 22nd percentile of its annual range, implying option traders are pricing in relatively low volatility expectations at the moment.
Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 92 out of 100. This means SNAP has exceeded volatility expectations during the past 12 months -- a boon for options buyers.