Here's Why Bob Peck Remains Bullish On Twitter Post-Earnings

Robert Peck of SunTrust Robinson Humphrey on Friday commented in a note that Twitter Inc TWTR still has several key product initiatives that are relatively new or in beta and that the company continues to build momentum.

Peck notes that Twitter's average revenue per user grew 65 percent in the quarter, down from 70 percent in the third quarter, but still the company is only monetizing at 57 percent of Facebook Inc FB levels on an monthly active user base and 77 percent on an estimated daily average user base. However, incremental margin remained "strong" at 41 percent versus an EBITDA margin of 30 percent.

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Peck also adds that Twitter's total ad engagements rose 78 percent, data revenues rose 105 percent year-over-year at a time when the company expanded its self-serve ad product to eight new countries.

Following the quarterly report, Peck is now tweaking his 2015 estimates. The analyst expects Twitter's full year fiscal 2015 revenue to be $2.34 billion (from $2.26 billion), EBITDA to be $576 million (from $519 million) and earnings per share to $0.45 (from $0.40).

Shares remain Buy rated with a $58 price target.