Market Overview

Twitter Ad Business Finally Enticing; Morgan Stanley Upgrades

Share:
Twitter Ad Business Finally Enticing; Morgan Stanley Upgrades

Twitter Inc (NYSE: TWTR) fell 16.5 percent over the last month, but one firm thinks the stock is right where it should be.

The Rating

Morgan Stanley analysts Brian Nowak and Jonathan Lanterman upgraded Twitter to Equal-Weight and increased their price target from $28 to $29.

The Thesis

Based on advertiser conversations, Morgan Stanley expects respective 14-percent and 13-percent related revenue growth in 2018 and 2019 as Twitter entices with video media, investment in advertiser educational tools and reduction in ad unit pricing.

At the same time, the analysts forecast monthly active user (MAU) growth driven by the World Cup and U.S. midterm elections. Platform improvements in content media and relevancy-ranked order are seen to enhance personalization and increase user retention.

“Valuation continues to be expensive (not new for TWTR), but we think investors are likely to continue to pay a premium for TWTR given expected revenue acceleration in '18; positive revisions pointing to continued turnaround progress; platform scarcity,” Nowak and Lanterman wrote in a Tuesday note.

They raised 2018 and 2019 estimates for earnings before interest, taxes, depreciation and amortization 6 percent and 9 percent, respectively.

Price Action

Shares traded up 2.3 percent premarket at a rate of $29.24.

Related Links:

Survey: Snap Still Wins With Teens, But Slips In 2018 As Twitter, Instagram Make Gains

Investors Cheer Facebook, Tech Stocks Amid Zuckerberg Testimony

Latest Ratings for TWTR

DateFirmActionFromTo
Jul 2019MaintainsNeutral
Jul 2019Initiates Coverage OnNeutral
Jun 2019Initiates Coverage OnBuy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Brian Nowak Citron ResearchAnalyst Color Short Sellers Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (TWTR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
OXYInitiates Coverage On61.0
COPInitiates Coverage On79.0
AMDInitiates Coverage On33.0
MYOVInitiates Coverage On26.0
ACMRInitiates Coverage On20.0
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 vipaccounts@benzinga.com

The Market In 5 Minutes: Netflix Surges, Tesla Pauses, Cohen-Hannity And More

16 Stocks Moving In Tuesday's Pre-Market Session