BofA/Merrill Lynch Upgrades Twitter, Inc. (TWTR) to Buy, $60 PT

BofA/Merrill Lynch upgraded Twitter, Inc. (NYSE: TWTR) from Neutral to Buy with a price target of $60.00 (from $40.00) saying the story just got better following Q2 results.

Analyst Justin Post comments, "While we were cautious on Twitter’s user growth (which will remain controversial given app MAU contribution disclosure), 2Q results and commentarysuggest: Twitter may have a much bigger O&O user reach (at 2-3x reported MAUs) than understood by street, Twitter’s ad platform (due to real time nature) may enable much better user monetization than expected, and new ad formats are launching (app downloads, video ads and commerce) which we think can be very successful and drive additional upside. While the stock was up big after hours, and the 3Q beat will not likely be as big as 2Q given lack of World Cup benefit, we think growing app download activity could drive 4 quarters of upside results (like FB)."

The fimr raised FY 2014 EPS from $0.06 to $0.09, FY 2015 EPS from $0.21 to $030 and FY 2016 EPS from $0.46 to $0.71.

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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