Market Overview

Twitter Wins Nomura Upgrade As Shares 'Appropriately Reset'

Share:
Twitter Wins Nomura Upgrade As Shares 'Appropriately Reset'
Related TWTR
Jim Cramer Weighs In On Twitter, Deutsche Bank And More
5 Reasons Citi Lifts 'Sell' Rating Off Snap's Stock
Momentum Strategies That Continue To Dominate Through January (Seeking Alpha)

Twitter Inc (NYSE: TWTR) is trading down 26 percent since the social media platform's second-quarter print, and it's a correction Nomura has been expecting. 

The Rating

Analyst Mark Kelley upgraded Twitter from Reduce to Neutral and maintained a $31 price target.

The Thesis

Kelley considers investor expectations “appropriately reset” as the risk-reward profile balances out. (See the analyst's track record here.) 

He expects immediate investments in platform clean-up — the consequences of which have been negatively received — to drive user base engagement in the long term. At the same time, ad format and relevancy improvements are seen to boost advertiser retention and growth, and the launch of a self-serve offering could catalyze margin expansion.

The analyst said he suspects the positives are offset by poor monthly active user trends.

“With this in mind, we also believe there is still some downside risk to [the first half of 2019] estimates (though they have come off a bit), and we expect the debate around privacy and platform health investments will lead to a discussion around the long-term margin profile management has outlined,” Kelley said. 

Price Action

Twitter shares were trading up 2.23 percent to $32.08 at the time of publication Tuesday. 

Related Links:

Pros And Cons From Twitter's Q2 Earnings

These Charts Help Illustrate Recent Struggles Of Facebook, Twitter

Latest Ratings for TWTR

DateFirmActionFromTo
Jan 2019Bank of AmericaUpgradesUnderperformBuy
Dec 2018GuggenheimInitiates Coverage OnBuy
Oct 2018Aegis CapitalMaintainsBuyBuy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Mark Kelley NomuraAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (TWTR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
FOLDCitigroupUpgrades0.0
EMNMorgan StanleyUpgrades90.0
DERMRaymond JamesUpgrades0.0
ARMKBerenbergUpgrades0.0
PENNNomuraUpgrades0.0
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.

Why This Analyst Says Samsung's Foldable Phone Isn't That Impressive

52 Stocks Moving In Tuesday's Mid-Day Session