Pivotal Research Upgrades Twitter & Google, Finds Both Are Undervalued By 20%
Analyst Brian Wieser finds both companies are currently undervalued by 20 percent.
Shares of Google were recently up 1.5 percent at around $503.
Shares of Twitter were up 1.6 percent at $35.63.
“Our DCF-driven valuation of $610 on a YE2015 basis, 22% above yesterday’s close, we upgrade Google to BUY,” the note said.
“Google's business has generally expanded better than we thought it would and margin erosion – while evidently worse than most investors expected – has not been quite as bad as we feared.”
“Our DCF-driven model for the company yields a $42 price target on a YE2015 basis, 20% above yesterday’s close, which warrants an upgrade from HOLD to BUY,” the note said.
“Most critically, Twitter’s revenue growth should allay concerns around user trends, as the company’s relationships with advertisers are strong and growing. Thus we remain comfortable focusing on the scale of the business at which time revenue growth begins to plateau.”
Image credit: Danny Sullivan, Flickr
Latest Ratings for TWTR
|Oct 2016||Loop Capital||Upgrades||Sell||Hold|
|Oct 2016||Evercore ISI Group||Upgrades||Sell||Hold|
|Sep 2016||Loop Capital||Downgrades||Hold||Sell|
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