Market Overview

Citi Upgrades Twitter Amid Improving Sentiment

Share:
Citi Upgrades Twitter Amid Improving Sentiment
Related TWTR
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
Loup Ventures: Facebook, Twitter Should Let Users Filter Political Content From News Feeds
Facebook Without Mark Zuckerberg (Seeking Alpha)

Shares of Twitter Inc (NYSE: TWTR) were trading lower by around 0.60 percent early Monday morning despite a notable upgrade from Wall Street.

Citi's Mark May upgraded Twitter from Sell to Neutral with a $20 price target.

Twitter has been lagging its internet peers year-to-date, up just 22 percent since the start of 2017 versus a 45 percent gain in the analyst's internet Index. (See May's track record here.)

At the same time, Twitter is up 40 percent since its post-second quarter lows, when the company failed to show investors any net subscriber growth and shares tumbled below key support levels.

The analyst attributed the recent momentum in Twitter's stock and reasons to drop a bearish outlook to the following: 

  • Easing comps ahead that could result in year-over-year revenue growth in the fourth quarter.
  • A stabilization in user metrics and ad product improvements, which bodes well for growth.
  • Cost saving measures such as headcount reductions which are supportive of margin upside.
  • Recent success in video partner agreements that will boost user engagement and monetization initiatives.
  • "Encouraging commentary" from agency contacts.
  • A "fair" valuation on various metrics, including free cash flow and comparisons to traditional media companies.

Related Links:

President Trump's Twitter Account Suspended For 11 Minutes

Twitter, A Stock For The Highly Risk-Tolerant Investor

Latest Ratings for TWTR

DateFirmActionFromTo
Oct 2018Aegis CapitalMaintainsBuyBuy
Oct 2018BMO CapitalMaintainsMarket PerformMarket Perform
Oct 2018NomuraMaintainsNeutralNeutral

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Citi Mark May media social mediaAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (TWTR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

A Pause In Intel's Big Rally

GBP/USD Forecast: Remains Vulnerable To Slide Further, Toward Mid-1.2900s