Why This Analyst Sees 19% Upside In Snap?

RBC Capital analyst Brad Erickson initiated coverage of Snap Inc (NYSE:SNAP) with an Outperform rating and $88 price target, suggesting a 19.1% upside.
He sees Snap having "all the trimmings of a strong social media business narrative," given its secularly growing ad market, evolving direct response offering, and new products.
Price Action: SNAP shares traded higher by 1.41% at $74.91 in the premarket session on the last check Friday.