UBS Upgrades Twitter, Inc. (TWTR) to Neutral

UBS upgraded Twitter, Inc. (NYSE: TWTR) from Sell to Neutral with a price target of $50.

Analyst Eric J. Sheridan said, "In analyzing the quarter, we were most positive on: a) 10% beat on revs (driven by Int'l monetization & data licensing); b) 64% beat on EBITDA (driven by ~700 bps improvement YoY in gross margins and R&D leverage); c) 81% of revenue from mobile (highest in digital advertising industry). We were less positive on: a) 14% of MAU audience now driven by auto application traffic (up from 12% in Q1 and 7-8% a year ago) – a sign that monetization could lag user growth in future quarters (especially in the US); b) 2H guide for EBITDA/capex implies heavier investment than 1H to support product/user initiatives; & c) US ad revenues that demonstrated only modest upside & QoQ growth only slightly above industry trends."

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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