After Twitter's Periscope Android Launch, It Remains A Long-Term 'Catalyst,' Jefferies Says

In a report published Wednesday, Jefferies analysts initiated coverage of Twitter Inc TWTR with a Buy rating and a price target of $60. Twitter has launched its live-streaming video app, Periscope, on Android. The launch comes two months after the iOS only launch. "The Android version contains all of the same core features as the iOS version, with some unique additions," the analysts mentioned. "Twitter's user base currently splits roughly 50/50 between Android and iOS, but is expected to continually skew towards Android. We continue to believe that Periscope will be an important driver of MAU growth for TWTR," the analysts added. The launch has created a readymade market of ~150MM potential new users for the Android application. Adoption of Periscope by more users is expected to boost activity on Twitter. In the report Jefferies noted, "Importantly, TWTR sees its split of users skewing towards Android LT. 77% of TWTR users are int'l and 90%+ of the next billion smartphones are expected to come from outside the US. Android has significantly higher share of the installed smartphone user base outside of the US and opening Periscope up to Android provides an additional avenue to drive MAU growth." The company's growth prospects are expected to be driven by the growing awareness and adoption of live streaming videos and the acceptance of Periscope.