Market Overview

Twitter Wins Nomura Upgrade As Shares 'Appropriately Reset'

Twitter Wins Nomura Upgrade As Shares 'Appropriately Reset'

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

Jan 2020MaintainsEqual-Weight
Jan 2020DowngradesBuyNeutral
Jan 2020Initiates Coverage OnUnderperform

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

KSURaymond JamesReiterates188.0
WTRB of A SecuritiesDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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