Why Twitter Is Worth $67 Per Share, According To JP Morgan
Twitter Inc (NYSE: TWTR) may finally be on track to grow users and the share price, according to analysts from JP Morgan.
The analysts pointed to new products, notably Video, Instant Timeline, While You Were Away, and the Logged-Out Homepage, as ways that the company will improve the user experience and grow active users over time.
This translates to revenue growth of 75 percent and EBITDA growth of 100 percent in 2015, the analysts argued.
JP Morgan said that the new products are a part of Twitter's evolution from a "text-based 140 character tweet platform into something much more engaging." Ultimately, the analysts expect that Twitter will grow its revenue per active user from $4.75 to something more closely aligned with Facebook Inc (NASDAQ: FB) at $9.
The $67 price target is based on a discounted cash flow analysis.
Shares of Twitter recently traded at $47.32, up 1.2 percent in Monday's premarket.
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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