UPDATE: Wedbush Assumes Twitter, Inc. (TWTR) at Neutral
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Wedbush analyst Ygal Arounian assumes coverage on Twitter, Inc. (NYSE: TWTR) with a Neutral rating and a price target of $75.00.
The analyst commented, "We assume coverage of TWTR shares with a Neutral rating, and a $75 price target as we like Twitter’s efforts to improve development velocity, and opportunity from new product services, but believe upside on user growth and revenue product is now priced into shares. Twitter set strong user and revenue growth targets over the next two years at its Investor Day in February off of stronger product development and a greater focus on driving revenue off its products. This is being driven by an effort to increase engagement on the platform by creating new types of surfaces like long-form, audio, and quick-form entertainment. The velocity of product development is key here as Twitter has re-engineered its ad server and has overall improved its ability to increase the velocity at which it develops and launches new products, something it aims to help drive user growth in an ever-competitive entertainment landscape. While we like the initiatives Twitter is focused on, we remain more cautious on Twitter’s direct response and ecommerce advertising efforts. With shares up ~60% since mid-January (vs. the Nasdaq +7%/S&P +10%) we believe shares now appropriately reflect the upside opportunity from the initiatives Twitter has put into place and its targets to double revenue by YE2023."
Shares of Twitter, Inc. closed at $70.86 yesterday.
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