Snap closed more than 2 percent higher on Tuesday after receiving its second "buy" rating from a Wall Street firm.
In a note released Tuesday, Drexel Hamilton initiated Snap coverage with a "buy" rating and a $30 price target. Snap was last up a little over 1 percent in after-hours.
"Snap is a very unique tech company that should not be pigeonholed in a particular industry, or investors risk missing the forest for the trees. Snap views itself as "a camera company" and we believe this fosters a mindset for innovation to transcend the boundaries of its competitors," analyst Brian White said in the note to investors. "We view Snap as a platform for the imagination that unlocks the creativity of its users and allows uninhibited expression with friends. Snap is a fun place to spend time which can be monetized."
The analyst note emphasized Snap's ability to reach the "most desirable" and "most difficult to reach generation for advertisers": millennials.
"Although other social messaging platforms enjoy a much higher user base, we believe Snapchat has a cachet with millennials that will be difficult for other platforms to garner," White said. "Moreover, we believe there is significant opportunity for the Snapchat "pixy dust" to spread overseas and across generations in the coming years."
Snap received its first "buy" rating yesterday from Monness Crespi Hardt.
(Disclosure: CNBC parent NBCUniversal is an investor in Snap.)