Wunderlich Securities Expects Another Strong Quarter for Twitter

In a report published Friday, Wunderlich Securities analyst Blake T. Harper reiterated a Hold rating and $45.00 price target on

. In the report, Wunderlich Securities noted, “Twitter, Inc. (TWTR) reports Q3 results after the market close on Monday, October 27, and we expect the company to post revenues, EBITDA and EPS above our estimates and the consensus (see Figure 1). We expect the company's continuous improvements to the core product and efforts to grow the service internationally to help support MAU growth, which we estimate to be 285 million for Q3. We believe advertisers have continued to increase their spending on social platforms, including Twitter, and estimated advertising revenues should increase over the next several quarters. We believe the business and financial model are gaining momentum, but are more cautious on the shares, which are trading at 14.5x EV/S and 64x EV/EBITDA on our FY 15 estimate growing 61% Y/Y and 101% Y/Y, respectively.” Twitter closed on Thursday at $49.67.