Snap Inc. (SNAP) shares rose more than 6% during Tuesday's session after BTIG raised its price target from $15.00 to $20.00 per share. Analyst Richard Greenfield expressed confidence in Snap's "recovery story" and noted an improvement in staff morale.

The BTIG analyst believes that Snap's engagement metrics could receive a boost from third-party apps, like Yolo, as well as new filters, improved Discovery, new games, and its Android app. The $20.00 price target reflects a 41% premium to Tuesday's opening price and represents a new Street high.

Earlier this week, Aegis Capital upgraded Snap stock to a Buy for the first time since its IPO. Analyst Victor Anthony believes that there's less skepticism surrounding the company's ability to drive user growth and attract advertisers. He also notes that Snap isn't as exposed to privacy and anti-trust issues as competitors like Facebook, Inc. (FB). Aegis Capital issued a price target of $17.00 per share on the stock as part of the upgrade.

Chart showing the share price performance of Snap Inc. (SNAP)
TrendSpider

From a technical standpoint, the stock reached new 52-week highs following the breakout during Tuesday's session. The relative strength index (RSI) moved into overbought territory with a reading of 70.01, while the moving average convergence divergence (MACD) continued its bullish uptrend. These indicators suggest that the stock could see a near-term pullback before resuming its long-term trend higher.

Traders should watch for some near-term consolidation into the middle of its price channel. If the stock breaks out from trendline resistance at $14.80, traders could see a strong move toward fresh highs. If the stock rebounds lower, traders could see a move toward the middle of its price channel or lower trendline support at around $11.50, although that scenario appears less likely to occur given the bullish sentiment.

The author holds no position in the stock(s) mentioned except through passively managed index funds.