Guggenheim upgraded Snap (SNAP) to Buy from Neutral in a research note Monday, raising its price target for the stock to $23 from $9 per share.

The investment bank sees Snap shares positioned for outperformance in 2024, driven by strong digital advertising demand and improved relative returns for SNAP ad units.

Analysts believe that overall digital advertising demand will accelerate in 2024, “supporting above-census revenue growth for the industry.” As a result, they forecast SNAP revenue growth to outperform as the demand drives industry-wide ad price increases. They also expect Amazon Ads expanding ambitions and partnerships to bolster SNAP advertising growth, lifting pricing power across the platform.

“Ultimately, we believe current consensus expectations underappreciate the pace of revenue growth in 2024 and beyond,” said Guggenheim’s analysts.

“Shares have significantly outperformed the NASDAQ index since 3Q earnings on October 24 as a more positive investor outlook has materialized (SNAP up 84% versus 16% for the NDX). However, we continue to see a favorable backdrop for sustained share outperformance.”