Yesterday morning, Snap Inc (NYSE:SNAP) introduced user Bitmojis “into the real world,” offering users the option to animate their personalized expressive cartoon avatars in their snaps. It has been a week full of excitement for investors of the popular Snapchat app parent company, as Apple likewise held its highly anticipated iPhone X unveiling, where the tech titan revealed augmented reality collaborations at play with Snap behind-the-scenes.
In today’s world where people seek out ways to maximize self-expressive communication, Snap is making waves, having already strategically purchased Bitstrips, the creator of Bitmoji, just a year and a half ago in an over $64 million deal. While until now, users already sent personalized Bitmojis amongst friends on the Snap platform, this new upgrade utilizes a rear facing camera to let users bring Bitmojis into a real-world interaction experience. Wherever a user directs the rear facing camera sets the video or photo background, and thereby, a user can plant their Bitmoji directly in whatever social encounter they want to share next.
This Bitmoji-Snap real-world splash “expands the capabilities of this unique innovation” to offer “an even more unique experience for customers,” cheers Drexel Hamilton analyst Brian White, which coupled with Apple’s Snap “shout-out” in the titan’s iPhone X demonstration, “we believe will open up new opportunities for Snap.”
White continues to trumpet a bullish forecast for the social networking platform: “Snap continues to grow at a rapid pace, introduce new innovations, roll-out compelling content and remain true to its core base of millennial followers. We continue to believe Snap has strong upside potential over the next 12 months […]”
As such, the analyst maintains a Buy rating on SNAP stock with a price target of $30, which implies a 99% increase from current levels. (To watch White’s track record, click here)
Pointing to an impressive, interesting potential in the mix with Apple and its iPhone X, White concludes: “During Apple’s iPhone event on Tuesday, Apple indicated they have been working on new AR experiences with Snapchat and provided a iPhone X demonstration of new Snapchat lenses with stunning detail that perfectly fit Craig Federighi’s (SVP of Software Engineering at Apple) face. We expect the iPhone X to provide more enthusiasm around the augmented reality (AR) trend and Snap can leverage the company’s new TrueDepth Camera System.”
Not everyone on Wall Street echoes White’s strong convictions banking on the company’s success, as TipRanks analytics demonstrate SNAP as a Hold. Based on 27 analysts polled by TipRanks in the last 3 months, 8 rate a Buy on Snap stock, 14 maintain a Hold, while 5 issue a Sell on the stock. The 12-month average price target stands at $15.11.