Cantor Fitzgerald analyst Kip Paulson upgraded Snap to Overweight with an unchanged price target of $15.

The shares closed yesterday up 77c, or 6.5%, to $12.60. The analyst believes the risk/reward has shifted significantly following yesterday's expiration of the largest remaining lock-up period and the 8.5% share decline since Snap's Q2 earnings report.

The company's engagement is growing daily active user estimates appear to be more achievable, and there could be "significant upside" to average revenue per user in 2018 and beyond, Paulson tells investors in a research note. He views Snap's current valuation as attractive.