Jefferies analyst Brian Fitzgerald is out with a confident research note evaluating Snap Inc (NYSE:SNAP) today, specifically commending the popular Snapchat app parent company’s engagement that keeps shooting off like a rocket.

When taking a survey touching base with one thousand Facebook and Snapchat users last year, the analyst discovered that FB-acquired Instagram as well as Snapchat continue to experience sustained user growth. In fact, Snapchat usage is notably taking off quicker than all the rest when eyeing the “older demographics,” or 25 years of age and up.

In reaction to the promising survey, the analyst reiterates a Buy rating on SNAP with a price target of $30, which represents a just under 51% increase from where the shares last closed.

From Fitzgerald’s stance, “Recent improvements to targeting as well as gamified ads should result in ARPU growth, which is SNAP’s most important growth lever. Snap has improved the ability to target with direct response ads as well as increased the number of gamified ads which have much longer brand engagement. Advertisers have reported time engaged with these game ads~10x of Sponsored Lenses. We see these as meaningful drivers to ARPU in the near term.”

“Additionally, we highlight Snap’s recent improvements to targeting and the increase gamified ad formats will help drive ARPU growth over time. Findings suggest there could be upside to SNAP’s 1Q results, driven by out perf in both DAU and the key ARPU metrics,” Fitzgerald contends.

Looking ahead to Snap’s first quarter print due May 10th, the company’s first quarter post-IPO, the analyst calls for DAUs circling 167 million, worldwide ARPU of $0.86, and revenue of $144 million, marking a 270% year-over-year rise.

Brian Fitzgerald has a very good TipRanks score with a 71% success rate and a high ranking of #68 out of 4,560 analysts. Fitzgerald yields 15.6% in his annual returns. However, when recommending SNAP, Fitzgerald loses 5.1% in average profits on the stock.

TipRanks analytics demonstrate SNAP as a Hold. Based on 35 analysts polled by TipRanks in the last 3 months, 12 rate a Buy on Snap stock, 16 maintain a Hold, while 7 issue a Sell. The 12-month average price target stands at $23.48, marking a nearly 18% upside from where the stock is currently trading.

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