Twitter (TWTR) Gains Following Positive Comments at JPMorgan

Twitter, Inc. (NYSE: TWTR) was strong Monday following positive analyst comments from JPMorgan. The firm maintained an Overweight rating on Twitter with a price target of $67. The stock was also recently added to JP Morgan's Focus List.

Analyst Doug Anmuth pointed to accelerating product launches, led by native video, an increase in users and ad revenue, and compelling risk/reward.

"We reiterate our OW rating & $67 PT as we expect the accelerating pace of execution on user & advertiser products to drive upside to 2015 & 2016 estimates," said Anmuth. "We are encouraged by Twitter’s heavy product launch cadence & we expect new products like Video, Instant Timeline, While You Were Away, & the Logged-Out Homepage to improve the user experience & increase MAUs over time."

"While some of these enhancements will take multiple qtrs to play out, we believe Twitter is starting from a low base in both the user experience & monetization, & our above-consensus estimates call for 75% revenue growth & nearly 100% EBITDA growth in 2015. While investor sentiment in the name has improved since 4Q earnings, we think considerable skepticism remains & Twitter’s risk/reward is very compelling," added the analyst.

Discussing native video in more detail, Anmuth said, "We think native video is an important step as Twitter continues to evolve beyond a text-based 140 character tweet platform into something much more engaging. We also believe products such as Instant Timeline & While You Were Away will increase engagement, & we will see further efforts to improve curation on the platform. The deeper distribution partnership w/Google should also drive increased traffic to Twitter's Logged Out Homepage."

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 $46.75 yesterday.

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