UPDATE: Pivotal Research Raises Price Target On Twitter On Model Updates Ahead Of 4Q14 Earnings

In a report published Wednesday, Pivotal Research analyst Brian Wieser reiterated a Buy rating on Twitter (NYSE: TWTR), and raised the price target from $42.00 to $50.00.In the report, Pivotal Research noted, “Twitter is another company we recently upgraded to BUY from HOLD. Our price target on Twitter is rising both because of the cost of capital changes described above (disproportionately impactful on a company like Twitter which will not produce cashflow for many years into the future) but also because we think there is increasing reason for positivity around the company's ability to monetize its platform. Our valuation on the company's equity is now $36bn, which applies against 710mm shares on a YE2015 basis to derive our new $50 price target vs. $42 previously. Half of the increase is due to upwardly revised revenue estimates and half of the increase is due to the aforementioned changes to our cost of capital estimates. We continue to rate Twitter BUY.”Twitter closed on Tuesday at $39.65.