Twitter (TWTR) Sell Rating Reiterated at Wunderlich

Wunderlich Securities maintained a Sell rating on Twitter, Inc. (NYSE: TWTR) with a price target of $38.00.

Analyst Blake T. Harper said, "Twitter, Inc. (TWTR) reported Q1 sales 4% higher, EBITDA more than double ($36.9mm vs. $18.2mm) and non-GAAP EPS $0.03 higher than our in-line-with-the-consensus estimates. Monthly active users (MAUs) grew to the high end of our estimated range to 255 million (up 25% Y/Y), while ad revenue per 1,000 timelines declined sequentially to $1.44 (from $1.49) and timeline views per MAU of 614 were flat Q/Q and down 8% Y/Y, all of which will be viewed as a disappointment by investors given the valuation and expectations. Management increased FY14 guidance slightly and we believe is taking proper steps to expand the platform's reach and monetization potential. We are maintaining our Sell rating given the valuation of 15x EV/S on FY15 estimates and expect more pressure from the lock-up expiration."

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 $42.62 yesterday.

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