Snap Inc (NYSE: SNAP) has rallied over 50% since late September but a Jefferies analyst continues to still see meaningful upside in the social media stock.

On Thursday, James Heaney upgraded the company behind the popular camera app to “buy” and said its shares could climb further to $16 which suggests another 23% upside on their previous close.

The analyst is bullish on Snap stock as he’s convinced that the worst is behind it. He also sees a “pathway back to revenue growth over the next three to five years”.

Last month, Snap reported a surprise adjusted profit for its fiscal Q3.

The New York listed firm came in ahead of Street estimates for revenue and global daily active users in its recently concluded quarter as well.

James Heaney recommends investing in the California-based company also because it has recently snagged a social shopping deal with Amazon.com Inc that he’s confident will help with revenue growth.

The Jefferies analyst expects Snap to sees its revenue jump 15% year-on-year in fiscal 2024 partially on continued strength of its premium subscription.

Doubling down on its brand advertising products and partnering with other retailers will be a potential tailwind for the Snap stock as well, he added.

Heaney also upgraded Pinterest Inc to “buy” this morning and raised his price target on the tech stock to $41 that translates to about a 20% upside from here.