UPDATE: Stifel Initiates Coverage on Twitter at Buy, Establishes $75.00 PT

In a report published Friday, Stifel analyst Jordan Rohan initiated coverage on Twitter, Inc. TWTR with a Buy rating, establishing a $75.00 price target. According to the report, Advertisers have only just begun to figure out how to use the Twitter platform, which itself is adding major targeting capabilities and ad formats at a rapid pace. “With a current enterprise value of approximately $42 billion, we believe shares clearly discount potential upside to existing estimates,” the report noted. “And, while it would be much safer and easier to back away from the shares at current levels, we believe strategic value, business model flexibility, and earnings momentum will keep them moving higher.” Some reasons to own: -”With “only” 232 million users, versus Facebook's 1.2 billion, Twitter has years of user growth ahead. Twitter resonates particularly well with younger users, keeping it quite relevant for marketers.” -”Twitter is a predominantly mobile platform that is pervasive in media and pop culture. The ad platform is still in its infancy, and we estimate ad revenues will be able to grow six-fold over the next four years.” -”In the U.S., Twitter currently monetizes at a level Facebook did three years ago, despite a lack of platform features. Over time, we believe Twitter will generate a higher user ARPU than Facebook, providing upside potential to forecasts.” TWTR closed Thursday at $60.57 with shares trading down at 1.62 percent.