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4 Reasons Why Wunderlich Was Impressed With Twitter On Its Analyst Day

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Here are four key takeaways from Wunderlich’s notes on Twitter Inc (NYSE: TWTR) and its first Analyst Day.

  1. "The company made a compelling case that it can grow and better monetize its user base. We came away more positive but with no changes to the Q4 expectations for little to no MAU growth and the high valuation of 12x on FY15 estimates, we maintain our Hold rating."
  2. "One of the most popular updates among users should be a 'While you were away' feature that highlights relevant content a user missed while offline."
  3. "Aspirations to grow revenues from $1 billion in 2014 to $5 billion in 2017 and $14 billion by 2024. Specific ad product metrics and demos were given to prove the efficacy of Twitter ads, which should help the company improve its monetization."
  4. "We expect TWTR to continue to have positive momentum given the impressive presentation but with the stock trading at 12x EV/S and 52x EV/EBITDA on our FY15 estimates, it leaves little opportunity for upside over the next 6-12 months unless the company can accelerate its user growth."

The above content is embargoed by 90 minutes.

Shares of Twitter recently traded at $41.36, down 2.8 percent.

Latest Ratings for TWTR

Aug 2017JefferiesDowngradesBuyHold
Aug 2017SunTrust Robinson HumphreyInitiates Coverage OnHold
Jul 2017Bank of AmericaMaintainsUnderperform

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: WunderlichAnalyst Color Intraday Update Analyst Ratings


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