Snap (NYSE: SNAP) shares traded higher on Tuesday after Barclays said the social media company could hit a "turning point" next year.
The investment bank upgraded Snap to overweight from equal weight and raised its price target to $18 a share from $11, implying a 32.7% upside from Monday's close.
"We've been on the sidelines since the IPO, but feel now is a good time to start accumulating shares," Barclays analyst Ross Sandler said in a note Tuesday. "Snap may start hitting or exceeding consensus revenue estimates and accelerating growth in 2018 now that the pricing transition is [in the] late stage."
Facebook (NASDAQ: FB) made further inroads into Snap's youth-market territory Monday, with news it would launch a messaging app aimed at children under the age of 12 who can't legally set up their own page on the social media giant.
Sandler also said Snap could benefit from a narrative change away from 2017's "Facebook is killing Snap" to "these companies can co-exist" like Priceline Group and Expedia.
The moves followed an upgrade from Jefferies, which raised its recommendation on the messaging app maker to "buy" from "hold," and a similar endorsement from Barclays, which raised the Venice, Calif.-based group to "overweight" with a price target of $18 a share, up from a previous forecast of $11.
Snap shares have fallen nearly 45% since going public in early March, as the company has failed to meet investor expectations. Mounting pressure from Facebook has also pressured the stock lower.
The shares of Snap captured 69 cents, or 5.1%, in early trading Tuesday to $14.26.