Shares of social media platform Snap Inc SNAP are poised for further upside, according to a Goldman Sachs analyst. 

The Snap Analyst: Heath Terry maintained a Buy rating on Snap shares and increased the price target from $47 to $70. 

The Snap Thesis: A number of tech innovations and product partnerships Snap has announced since it reported third-quarter results Oct. 20 and a favorable macroeconomic backdrop increase the likelihood of above-consensus revenue growth in the fourth quarter and beyond, Terry said in a Tuesday note.

The company is broadening its advertiser base and growing engagement on the platform, the analyst said. 

Snap's Spotlight product; new ad campaign objectives and bid types; and Unity partnership have the potential to drive further momentum in engagement growth as well as provide valuable scale to advertisers, he said. 

Goldman now expects 58% year-over-year revenue growth for Snap in the fourth quarter, better than the 50% growth the consensus is modeling, and DAUs of 259 million, driven by strong performance in the rest of the world segment, especially India.

Much of the momentum coming out of the fourth quarter will likely continue, driving sequential growth rates throughout 2021 that are at least in-line with typical seasonal growth rates seen in 2018/2019, Terry said. 

On average, the firm raised its 2020-2022 revenue and adjusted EBITDA estimates by 8% and $164 million, respectively, on expectations for sustained momentum in Snap's ad business as it continues to improve its advertising technology, grow its advertiser base and add functionality to improve user engagement.

SNAP Price Action: At last check, Snap shares were rallying 6.86% to $51.57.