Cantor Fitzgerald Upgrades Twitter (TWTR) to Hold Following Pullback

April 10, 2014 6:51 AM EDT
Get Alerts TWTR Hot Sheet
Price: $67.22 +0.79%

Rating Summary:
    19 Buy, 36 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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Cantor Fitzgerald upgraded Twitter, Inc. (NYSE: TWTR) from Sell to Hold with a price target of $45.00 (unchanged).

Analyst Youssef Squali said, "We are upgrading TWTR to HOLD from SELL and maintaining our $45 fair-value PT. To be sure, we still favor FB, which is a 2014 top pick for us; that said, a combination of 1) a positive read into 1Q:14 results, 2) the imminent launch of several new ad formats to drive monetization, and 3) a pullback in valuation make us less negative on the name. A large lock-up expiration in early May and a full valuation keep us from getting more constructive, however."

"TWTR's valuation remains high, but better than before. Twitter trades at 19.8x EV/Revenue, 126.8x EV/EBITDA on our FY:14 estimates, and 10x and 51x our FY:15 estimates. While still a rich valuation by any measure, it's down significantly from the 30x EV/Rev and 200x EV/EBITDA back in late December/early January. Valuation aside, given its ~100% annual revenue growth, Twitter remains positioned as an ideal play on continued secular growth in mobile and social ad spending, particularly as high-value brand ad dollars transition to the Internet," he added.

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 $42.49 yesterday.



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