Twitter Inc (NYSE:TWTR) has been a victim of "executional hiccups" but the "ship is moving in the right direction," according to Pivotal Research Group.
The Twitter Analyst: Michael Levine upgraded Twitter's stock from Hold to Buy with a price target lifted from $36 to $59.75.
The Twitter Thesis: The following are the many points of logic behind Pivotal's new bullish stance on Twitter's stock:
- Twitter has benefited from superior usage metric amid the COVID-19 pandemic and the company is converting users who up at the site (classified as MAUs) to monetized users at a greater rate than before.
- Twitter's revenue improvement in July and August was the "most profound" at Twitter compared to other stocks under coverage.
- Twitter's ad business can still benefit from live events. Disappointing ratings "doesn't change what it means" for an advertiser looking to advertise to a client base that continues to move towards online channels. Twitter CFO Ned Segal pointed out on CNBC that empty sports stadiums imply platforms like Twitter can become like a new stadium.
- Elliott Management and Silverlake are not "playing for a 25%-35% return." The two investment firms are among the most successful and esteemed in the technology space.
- Twitter is "the greatest news product on the planet." Most notably, the analyst writes, "without getting too political, FOX news unwatchable as it is so antidemocratic and CNN unwatchable as it is so anti-republican." Instead, Twitter offers everyone the ability to customize and curate personalized news sources
TWTR Price Action: Shares of Twitter were trading higher by 6.8% at $45.65 after hitting a 52-week high of $46.82.
Facebook, Twitter, YouTube Make Peace With Advertisers Over Harmful Content: FT
Pinterest Sets Record For Daily Downloads — Thanks To Apple