UBS Downgrades Twitter, Inc. (TWTR) to Neutral

(Updated - January 17, 2017 7:16 AM EST)

UBS downgraded Twitter, Inc. (NYSE: TWTR) from Buy to Neutral with a price target of $18.00 (from $22.00).

Analyst Eric Sheridan sees Twitter losing ground in the fight for ad dollars. He comments "Based on our 2H'16 ad industry conversations & Q4'16 channel checks, we believe that TWTR faces forward medium term operating challenges in its advertising business that will produce growth rates below industry. In our analysis, the main drivers of those operating headwinds are poor execution in its direct response advertising efforts (some products now being de-commissioned), continued pressure on the mix of available ad inventory and pricing, overall industry competition as GOOG/FB maintain consistent strength and Instagram/Snapchat monetization efforts begin to ramp & mgmt turnover (most notably COO Adam Bain). In our recent advertising industry deep dive (link), we noted that UBS Evidence Lab work points to flattening engagement trends and flat to decreasing ad effectiveness across Twitter."

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 $17.25 yesterday.

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