UPDATE: UBS Downgrades Twitter from Neutral to Sell
UBS downgraded Twitter (NYSE: TWTR) from Neutral to Sell and lowered the price target from $45 to $42 in a research note Thursday.
The firm's Eric J. Sheridan lowered his estimates due to negative trends in user growth/engagement and the lack of upside in estimates over coming quarters.
Sheridan said, "Twitter remains one of the most expensive stocks in our universe - an out performance that we believe is unlikely to be sustained given questions raised by the earnings report."
"A lack of mainstream adoption or a more simplified use case was a worry of ours coming out of the IPO & seems to have come to the fore faster than we had anticipated," according to Sheridan.
TWTR is down over 20 percent at last check; the shares have lost more than 13 points Thursday, and the stock is currently trading around $52.45.
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