Wunderlich Securities Comments On Twitter Inc.

On Wednesday, analysts at Wunderlich Securities commented on shares of Twitter Inc. TWTR. In a note titled, ‘Bulking Up Ecommerce Capabilities In Time For the Holidays’. Currently, Wunderlich analysts have a Hold rating and $45 price target on shares of Twitter Inc.

Within the note analysts comment on how Twitter is enhancing its ecommerce capabilities.

Blake Harper finds that “the company has gotten more serious about its ecommerce opportunity and also introduced a Buy button in September that enabled users to buy something from an advertiser directly from a tweet.”

“Given Twitter’s ambitions to better grow and monetize its user base, along with the large market shifts to mobile and social commerce, it makes sense for the company to get more aggressive with new product introductions and potential acquisitions”

Key Points include:

• Ecommerce could be significant revenue generator but not guaranteed; “social commerce is still a nascent category, but holds enormous potential given the ability for social platforms to offer personalized product recommendations and use data to drive repeat purchases and reduce shopping cart abandonment.”
• The company is leveraging the Cardspring acquisition for ecommerce play.
• Twitter's CFO Anthony Noto's misguided tweet highlights areas for improvement.
• Still expect the company to make acquisitions that improve user growth, user experience, or user monetization.
• Growth opportunities are promising but may already be priced in.

Shares of Twitter recently traded at $39.85 up 0.23 percent.