UPDATE: Nomura Initiates Coverage on Twitter

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on

with a Neutral rating, establishing a $60.00 price target. According to the report, TWTR is a direct play on mobile ad growth, given its short-form format. As such, TWTR benefits from the significant secular tailwinds of global device penetration. “Currently 70% of Twitter usage takes place on mobile, suggesting a clean runway for mobile monetization from here,” the report noted. “In this report, we emphasize three key positives on TWTR fundamentals; however, given a stretched valuation, it is difficult to argue for upside to current levels, and as such, we await a better entry point.” TWTR closed Tuesday at $58.21.