Monness Crespi Hardt initiated its coverage of the disappearing-photo app, recommending that clients Snap them up with a price target of $25.
If that were to come to pass, that would be roughly 30% upside from last Friday's closing price.
"We see a company with the potential to outpace revenue growth of peers by 7x, along with a steep margin trajectory, while peer margins have likely peaked", he said in a report. "There is substantial execution risk, but we're prepared to give the benefit of the doubt at this stage knowing what we know about Snap and knowing what we know about the efforts of its competitors". That forecast helped lift shares, which jumped nearly 4% during midday trading before closing up 2%.More news: The Internet is losing it over video of this giant chicken
Most of Wall Street has given Snap a thumbs-down following its IPO earlier this month.
It was high praise in comparison to other Wall Street analysts, who have thus far given Snap either a "Sell" or a "Hold".
SNAP shares have struggled since coming public.More news: Hudson's Bay exposes Saks customer info online
Snap Inc. shares hit below $20 for the first time since the company's $3.4 billion public listing recently.
And the analyst community was quick to pile on with a pretty bearish set of initial ratings.
Based on the average of analysts' buy, sell and neutral recommendations, Snap is the worst-rated stock among 288 USA companies that have a market capitalization of at least $20 billion, according to Thomson Reuters data.More news: Injury forces Eden Hazard to miss Belgium internationals
- Pakistan deplores killing of innocent Kashmiris by Indian forces in occupied Kashmir
- Iraqi prime minister jokes with Trump about wiretaps
- Tottenham 2-1 Southampton Whilst Spurs Claim Victory
- Special Olympics Gibraltar at the World Winter Games in Austria
- NCAA TOURNAMENT: Oregon's late rally eliminates URI
- Tipping Off: On to the second weekend of the NCAA Tournament
- Theresa May says she will trigger Brexit next Wednesday
- Amazon Cancels Delivery Of A Pair Of Editions
- UK PM Theresa May to trigger Brexit on March 29
- Study Sheds Light On Opioid Use Among Children