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

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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

DateFirmActionFromTo
Oct 2019AssumesNeutral
Oct 2019MaintainsEqual-Weight
Jul 2019MaintainsNeutral

View More Analyst Ratings for TWTR
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Posted-In: Brian Fitzgerald Brian Pitz JefferiesAnalyst Color Price Target Initiation Analyst Ratings

 

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