Wunderlich Says New Features May Help Solve Twitters MAU Woes

Twitter Inc TWTR shot higher on Friday following strong EPS, despite not adding as many monthly active users as the market expected. Wunderlich said that user growth is still a “work in progress,” but that new products may aid growth.

For now, Wunderlich says that Twitter is getting a pass on MAU growth as investors look to the future to make up for present failures. Additionally, the analysts are skeptical of Twitter’s ability to monetize logged-out users, but believe the “While You Were Away” feature, as well as direct messaging and video-editing capabilities, can ultimately attract new users and increase engagement.

Wunderlich believes that the stock is fully valued, raising its price target to $50 from $45, based on higher EPS estimates and the same valuation methodology.