Shares of the Snaphcat-parent were sharply higher early Wednesday after Credit Suisse raised its price target for year-end 2018 from $17 to $20 per share.
Based on Snap's closing price Tuesday of $14.34 per share, a move to $20 would represent a nearly 40 percent increase.
In a note to clients, Credit Suisse analysts said they're maintaining their outperform rating while putting a "downside risk of about 6 percent" on the stock.
"This is an upgrade" based on the firm's price target bump, Cramer contended. "Today is a suspend-all-belief day" and "craziness" when considering Snap's drubbing since its March IPO, he added.
"I've been waiting for Snap to get back to that level where it became public," Cramer said. "This is a very encouraging report."
In the face of tough competition from social media giant Facebook, Snap's stock has declined about 40 percent since its first-day closing price of $24.48 per share. The IPO was priced at $17 a share.
Cramer said he likes the note because many analysts have not said anything good about Snap, but he warned he'd recommend investors be in Facebook rather than Snap.
— Disclsoure: Jim Cramer's charitable trust owns shares of Facebook.