Deutsche Bank Says Twitter 'Could Be One Of The Best Mean-Reversion Ideas For 2015'

In a report published Thursday, analysts at Deutsche Bank provided some insight on Twitter Inc TWTR. The firm has a Buy rating and $60 price target on the stock.

Analysts said that although Twitter remains as one of the most controversial companies in large-cap consumer Internet (“given the frothy multiple, its C-suite turmoil and negative sentiment"), most investors still don’t think the value is attractive enough, and many “don’t believe management’s long term outlook ($11B+ rev).”

However, Deutsche Bank analysts seem to disagree, and think “Twitter could be one of the best mean-reversion ideas for 2015,” as “consumer internet stories that have: 1) improving core products, and 2) are heavily under-monetized, tend to work themselves toward much higher valuations, and the best time to add to positions is when they are most out of favor.”

The firm also provided an outlook for 2015, saying that it expects the discussion about Twitter’s MAU adds to eventually lose relevance in favor of several new products that the company is working on. Analysts also mentioned a few possible catalysts for the company.

“1) instant timeline (non-curated Twitter-light),

2) international subs,

3) video,

4) logged out experiences,

5) messaging,

6) a partnership with Google, or non-disclosed product innovations.”