J.P. Morgan analyst Doug Anmuth boosted his rating on Snap Inc. shares /zigman2/quotes/205087158/composite SNAP +0.13% to overweight from neutral on Wednesday following the company's third-quarter earnings report. "We believe Snap shares are increasingly compelling following a 20%+ pullback from recent highs and after delivering 3Q results that we believe showed more encouraging trends," he wrote. "Importantly, we believe that Snap's platform and business have both improved dramatically over the past several quarters." He pointed to the company's three straight quarters of daily-active-user growth, culminating in an acceleration to 13% growth for the third quarter. Revenue growth also accelerated for the third quarter in a row, Anmuth wrote. "We are encouraged by Snap's potential to attract more advertisers through self-serve, particularly more of those with always-on spending." He boosted his price target to $20 from $17. Needham analyst Laura Martin also upgraded Snap on Wednesday, ending her bearish call as she raised her rating to hold from underperform. Snap's stock is up 3.3% in premarket trading Wednesday. It has gained 154% so far this year, as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.03% has risen 20%.