Market Overview

Jefferies Initiates Coverage On Twitter, Cites Online Video Ads As Key Catalyst


Jefferies on Wednesday issued a company note on Twitter Inc (NYSE: TWTR), initiating coverage on the social media platform. Jefferies rates Twitter as a Buy with a $65 price target.

Analysts Brian Pitz and Brian Fitzgerald wrote, "We believe Twitter is a leader in the crowded social media space and is particularly well-positioned to benefit from online video ad & mobile tailwinds. Continued product improvements including more integrated video and the recent Periscope launch should help increase engagement. By '17, online video ads could be a $17B+ /year opportunity in the US and Twitter is well-positioned to capture a meaningful piece of that spend."

The analysts note five catalysts for Twitter's stock going forward:

  • 1. Twitter is positioning itself to take a meaningful share of the online video advertisement market. Analysts believe that this could be a $17 billion per year opportunity by 2017.
  • 2. Twitter is focusing on its user interface. The goal is to make the website more accessible to boost engagement.
  • 3. Twitter has announced syndication monetization deals and is expected to expand non-core monetization efforts in the future.
  • 4. Improved relations with developers from Fabric. This relationship would allow Twitter to optimize multiple sources of advertising.
  • 5. International monetization. This may increase revenue and provide more leverage to the company by growing its audience base.

Shares of Twitter closed Tuesday at $50.08. Shares were up more than 1.4 percent in Wednesday's pre-market session.

Latest Ratings for TWTR

Oct 2019AssumesNeutral
Oct 2019MaintainsEqual-Weight
Jul 2019MaintainsNeutral

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Brian Fitzgerald Brian Pitz JefferiesAnalyst Color Price Target Initiation Analyst Ratings


Related Articles (TWTR)

View Comments and Join the Discussion!

Latest Ratings

WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
WWells FargoMaintains123.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Benzinga's Top Upgrades

Jefferies Upgrades Hewlett-Packard To Buy