Rosenblatt Securities Says Twitter To See Revenue Growth Upside, Initiates At Buy

In a report published Thursday, Rosenblatt Securities analyst Martin Pyykkonen initiated coverage of

Twitter, Inc.TWTR

with a Buy rating and $60 price target as the company is now well positioned for a revenue growth and EBITDA margin expansion breakout. Pyykkonen noted six key points to support his bullish outlook:

Advertising monetization growth has exceeded user and usage growth.
Global sales force is reaching "critical mass" with direct sales in 73 countries.
Video clips ads should be in demand from large advertisers.
The frequency of technology innovation and new product rollout is increasing.
Efforts to reduce complexity for new and low frequency users are effective.
Twitter is reducing the complexity in reporting metrics for financial measurement.

"We think Twitter has an attractive fundamental long-term opportunity to further develop advertising monetization, primarily through targeted advertising and as well this year and beyond with brand advertisers," Pyykkonen wrote. "Targeted performance-based and direct response ads are well proven in the marketplace and have been the main driver in Twitter's advertising revenue growth so far."

Market News and Data brought to you by Benzinga APIs