Pivotal Research Upgrades Twitter, Inc. (TWTR) to Buy; 'We Think the Bird Can Continue to Fly'

(Updated - September 23, 2020 6:08 AM EDT)

(updating comment)

Pivotal Research analyst Michael Levine upgraded Twitter, Inc. (NYSE: TWTR) from Hold to Buy with a price target of $59.75 (from $36.00).

The analyst comments "Investors will admittedly need to underwrite a high multiple with a company that has had some historical executional hiccups. We believe it will be warranted if the ship is moving in the right direction as we suspect. In particular, we like: 1) Olympics on the come in 21, 2) the hopes for direct response to beginning to kick in (we think happening), and 3) a potential subscription business (albeit very nascent). While we had gotten off the TWTR train given the combination of valuation, heavy brand exposure during Covid-19 (which while recovering, is doing so at a much slower rate than DR), and historically relatively lack-luster product execution. While we still have some question marks about the DR business, we see signs of life. We think Q320 EPS and forward commentary are likely to act as positive catalysts for the stock. Additionally, we think sentiment is by far the most negative in our coverage and as a result, the rubber band for stock out-performance the greatest."

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 $42.73 yesterday.

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