Morgan Stanley Initiates Coverage on Twitter As Analyst Is Optimistic
Morgan Stanley analyst Scott Devitt initiated coverage on Twitter (NYSE: TWTR) with an Equal-weight rating.
Devitt commented that Twitter "will continue to benefit from smartphone adoption and visibility in offline media, and forecast Twitter doubling its US user base to nearly 110m users by 2020 (and around 600m globally). While Twitter currently captures less than 1% of US internet time spent, it remains a top 10 digital property." The analyst further noted that if Twitter's Amplify product becomes a "must-buy" product, Morgan Stanley sees further opportunity.
Although Morgan Stanley is optimistic on Twitter, the analyst notes that the current evaluation reflects the impending continued success. Devitt further reminds investors of risks including competition, limited non-US revenue generation, and unproven success of new revenue products.
Twitter closed at $41.57 on Friday.
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