Twitter: Ready To Move Up?

Shares of Twitter Inc TWTR opened strong on Monday on the back of news that Analyst at JMP Securities have initiated coverage on the stock with an outperform rating with a price target of $49. The reasoning provided by JMP analysts on the rating included Twitter’s ‘differentiated content’, ‘more product enhancements’ and ‘expanding profit margins’.

Fast Money traders Stephanie Link and Josh Brown were recently seen on CNBC discussing JMP’s rating on Twitter and making a bullish case for the company.

“Look, they made six main bullish points in this buy rec. probably the only one that mattered to me is the fact that they are pointing out how early stage the monetization efforts are and we know they haven’t been great. So, there’s a lot of focus on user growth slowing, which is true, so, legitimate concern. However, I think, if they get the ad products right, it will go a long way towards calming people down over the fact that it doesn’t grow as quickly as Instagram or whatever,” Brown said.

Link added to that, saying, “and because it’s still grew 70% in revenue this year, they have expanding margins, ad-loads are 1.5%, Facebook is at 5%, so, look at that as maybe your opportunity and your potential upside and so I think, to Josh’s point I think, the analysts is making the call on ‘yeah, you know what fourth-quarter monthly active users, we know how weak they are going to be, it’s in the stock at this valuation and they do have substantial growth opportunities going forward’, I like the call, we own it.”