JMP Securities On Twitter (TWTR) Q1 2017: "Advertising Revenue Continues to Face Headwinds"

JMP Securities maintains Market Perform on Twitter, Inc. (NYSE: TWTR).

Analyst Ronald Josey says the company is fairly valued although he remains encouraged by improving engagement trends. He tells clients in a morning note "[w]hile 1Q results came in better than expected, we believe it remains early in Twitter’s turnaround and that the risk/reward in shares is balanced at current prices."

Furthermore, Josey forecasts a 2017 gross margin decline of 660 bps year-over-year to 65.1 percent "as Live becomes a bigger part of Twitter's user case." He also expects a full wind down of TellApart among other products to impact revenue growth.

His FY 2017 EPS estimate is for $0.32 and FY 2018 EPS estimate is for $.32

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 $15.82 yesterday.

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