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Snap stock gains after Evercore upgrade

Shares of Snap Inc. are up more than 1% in premarket trading Tuesday after Evercore ISI analyst Kevin Rippey upgraded the stock to outperform from in-line, citing optimism for the company’s gaming efforts. “In our view, the near-term picture for SNAP’s fundamentals remains extremely positive with respect to user trends, revenue, and improved profitability,” Rippey wrote. “Adding to this, and informing our upgrade, is the view that over the medium and longer term, gaming provides Snap a credible vector of incremental growth, naturally fitting with the platform’s differentiated appeal to younger cohorts looking for innovative digital experiences to extend real world relationships.” He estimates that by 2022, Snap could see about $350 million in gaming revenue at attractive margins. Rippey raised his price target to $20 from $18 on the stock, which has surged 187% so far this year as the S&P 500 has gained 17%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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