The firm based the upgrade on a significantly better risk/reward profile following yesterday’s key lockup expiration, and with some downside set in after last week’s disappointing earnings.
Most of the lockups have expired, with 400M shares unlocked on July 29, 782M on Aug. 14 and another 20M to come on Aug. 29, Cantor says.
Price drops should attract more advertisers, the firm notes. (h/t Bloomberg)
The firm reiterates a $15 price target, implying 19% upside.