Twitter, Inc. (TWTR) PT Raised to $39 at Goldman Sachs As Growth Came to a Crashing Halt at Quarter End

Goldman Sachs analyst Heath Terry raised the price target on Twitter, Inc. (NYSE: TWTR) to $39.00 (from $35.00) after 1Q revenue of $807.6mn topped the FactSet consensus of $783.5mn. Growth in advertising revenue was flat with the US up +5% y/y and International falling -5% y/y. Strong performance through early March was offset by a 27% y/y decline during the last three weeks of the quarter.

The analyst reiterated the Buy rating, stating "While the lack of transparency may weigh on the stock near term, we believe that the acceleration in Twitter user growth from the utility that users find in the platform, the renewed focus on advertising technology, and the long term benefit to growth on the platform leave Twitter well positioned to exit this crisis stronger than it entered it. Our revised, $39 12-month price target (from $35), is based on 18x 2021E EV/EBITDA (15x prior), reflecting the net impact of our revised estimates and multiple expansion across the Internet space".

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