Twitter (TWTR) PT Raised to $60 at Janney Capital

Janney Capital analyst Tony Wible reiterated a Buy rating and boosted his price target on Twitter, Inc. (NYSE: TWTR) to $60.00 (from $48.00) following strong Q2 results and outlook.

Wible commented, "TWTR returned to accelerating MAU growth driving significant top line outperformance, as well as profitability improvements from incremental expense leverage. This drove renewed confidence in the TWTR's growth prospects and management initiatives and resulted in strong after-hours performance of ~30% in the stock. Even with the stock at those levels we continue to see upside, as the monetization thesis is just beginning to play out and is now complemented by the optionality of strong/accelerating MAU growth, which should help expand valuation. We are increasing our EBITDA estimates and FV to $60, driven by users contributing incrementally to revenue growth."

The firm is adjusting estimates to reflect: 1) higher US MAU; 2) lower US TLV/MAU; 3) higher Intl MAU; 4) lower Intl TLV/MAU; 5) higher global ad pricing; and 6) better operating margins from expense leverage. On balance, these changes increase our 2014 and 2015 Adjusted EBITDA to $265.2 million and $563.5 million from $212.5 million and $450.4 million, respectively

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 $38.59 yesterday.

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