KeyBanc Upgrades Twitter On Product Catalysts

Twitter Inc’s (NYSE: TWTR) execution is improving and seems poised to beat the Street’s current revenue estimates for 2021 and 2022, given its new product launches and a cyclical recovery in advertising, according to KeyBanc Capital Markets.

The Twitter Analyst: Justin Patterson upgraded Twitter's stock from Sector Weight to Overweight, while establishing a price target of $65.

The Twitter Thesis: The company seems well positioned to sustain over 20% annual revenue growth at its core business, Patterson said.

“We believe Twitter has made meaningful strides to improve its platform for users and advertisers. User adoption of Topics continues to grow rapidly, providing both a better user experience and improved targeting for advertisers,” he wrote in the note.

The analyst believes a cyclical ad recovery, a ramp-up in direct response products and new product experiences like Revue, with an estimated total addressable market of $36 billion, will lend upside to the current consensus estimates for the company.

TWTR Price Action: Shares of Twitter traded higher by 6% to $51.07 at publication time.

(Photo by Brett Jordan on Unsplash)

See Also: How to Buys Twitter Stock