Wunderlich Securities Sees Twitter Aspiring to Fly Higher

In a report published Thursday, Wunderlich Securities analyst Blake T. Harper reiterated a Hold rating and $45.00 price target on Twitter TWTR. In the report, Wunderlich Securities noted, “Twitter, Inc. (TWTR) laid out several ambitious goals, or aspirations, at its Analyst Day yesterday to grow its audience and revenues over the next several quarters and over the next decade, including hitting $14 billion in revenue and 40-45% EBITDA margins in 10+ years. While the company has set a high bar for expectations and therefore opened itself up for future disappointment, we view it as positive given that investors and the Street would set their own expectations anyway. The company also made a compelling case that it can grow and better monetize its user base. We came away more positive but with no changes to the Q4 expectations for little to no MAU growth and the high valuation of 12x EV/S on FY15 estimates, we maintain our Hold rating.” Twitter closed on Wednesday at $42.54.