Market Overview

Twitter Ad Business Finally Enticing; Morgan Stanley Upgrades

Share:
Twitter Ad Business Finally Enticing; Morgan Stanley Upgrades
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)

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

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
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.

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

16 Stocks Moving In Tuesday's Pre-Market Session