Baird analyst Colin Sebastian weighed in on Twitter, Inc. (NYSE: TWTR) after the company acquired streaming right from the NFL for Thursday night football. He doesn't view the deal as a "Hail Mary".

Sebastian notes that while the term were not disclosed (reports indicate ~$10M price-tag for 10-game slate), the rumored interest of other high-profile companies (Facebook/Amazon/Verizon/Yahoo) suggests the deal was highly sought-after among internet peers.

"Given the reported price tag, we believe the partnership could provide a relatively inexpensive channel for new user acquisition, a key positive," he said.

He added, "Given Twitter's stagnant user growth over the last few quarters, the increased brand exposure from streaming NFL content could provide a near-term boost to user metrics, particularly internationally where NFL popularity is growing rapidly but access to live content is limit."

The move is also consistent with "Twitter is Live" strategy.

Sebastian notes last year Yahoo paid ~$20 million for single-game streaming rights last year (Bills vs. Jaguars), which generated over 480 million minutes of streamed game-time (33% internationally). However, unlike the Yahoo deal, Twitter does not have exclusive rights over the digital ad inventory and is likely paying significantly less.

According to the NFL, Twitter was not the highest bidder in the negotiation process, "which suggests that Twitter's reach (800 million logged-out + logged-in users) and complimentary "broadcast-like" platform were determining factors in the partnership," according to the analyst.

"If the rumored price of ~$10 million is accurate (IR says costs already contemplated in FY16 guidance), the deal represents a potentially cost-effective user acquisition/engagement tool, assuming broadcasts attract a fair number of currently inactive Twitter users," Sebastian said.

The firm maintained a Neutral rating and price target of $18 on Twitter.

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 $17.09 yesterday.