Pivotal Upgrades Twitter, Thinks Earnings 'Whipsaw' Was An Overreaction

On Tuesday, analysts at Pivotal Research Group upgraded shares of Twitter Inc TWTR to Hold with a $42 price target.

Brian Wieser finds that valuing Twitter is subjective since the company is still in its infancy.

Wieser stated, “Our upgrade on Twitter occurs as the stock suffered another post-earnings whipsaw move in the after-market post 3Q14 earnings, which were solid overall. This was an over-reaction, and brings the stock towards fair value. However, this isn’t the first over-reaction since the IPO.”

Shares of Twitter were down more than 12 percent in the premarket.