UPDATE: Oppenheimer Upgrades Twitter, Inc. (TWTR) to Outperform

(updated to add analyst comment)

Oppenheimer analyst Jason Helfstein upgraded Twitter, Inc. (NYSE: TWTR) from Perform to Outperform with a price target of $37.00.

The analyst comments "We're upgrading TWTR to Outperform from Perform and establishing a $37 price target, suggesting 17% upside potential from current levels. This assumes 16.6x '19E EBITDA vs. peers (FB, GOOG, YELP) trading at 14.7x '18E, whereas we expect TWTR to grow '17-'19E EBITDA 50% faster (28% vs. 18%). While one quarter does not make a trend, we believe mgmt has stabilized pricing and expenses, and DAUs can post small gains. Within the scope of Social Media, we believe TWTR shares offer reasonable value with reduced execution risk. 3Q revenue and profit nicely exceeded expectations, with 4Q revenue in line and margin guidance ahead. More importantly, mgmt. signaled that DAU's should continue to grow, albeit at a slower pace, and expenses should grow slower than revenue in 2019."

For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.

Shares of Twitter, Inc. closed at $30.72 yesterday.

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