UPDATE: Tigress Financial Initiates Coverage On Twitter

In a note released Tuesday morning, Tigress analyst Philip Van Deusen initiated coverage on Twitter TWTR with a Neutral rating but has yet to set a price target.

Van Deusen predicts the company will continue to capture share from "traditional" advertising sources, but believes Twitter's growth metrics will continue to decelerate, sending investors to seek alternatives in the digital space.

Van Deusen noted that Twitter has one of the highest valuations among Tigress's coverage, and thus has "no compelling value at these levels."

As a final point, Van Deusen cited management as saying in the past the company's growth was "organic and viral," but now they must spend increasing amounts on R&D to stimulate user growth.