Morgan Stanley upgrades Twitter on ‘improving user growth’

Morgan Stanley upgrades Twitter on ‘improving user growth’


A top Wall Street firm is getting more optimistic on Twitter’s prospects.

Morgan Stanley raised its rating for Twitter shares to equal-weight from underweight, predicting better ad sales growth this year.

“Constructive advertiser conversations, improving user growth, and positive revisions make [Twitter shares] a more compelling risk/reward,” analyst Brian Nowak wrote in a note to clients Tuesday. “Recent advertiser conversations continue to be incrementally positive about Twitter’s ad business.”

Twitter’s stock rose 2.3 percent in Tuesday’s premarket session after the report.

Nowak increased his price target for Twitter shares to $29 from $28, representing 1.5 percent upside to Monday’s close.

The analyst said Twitter improved its ad tools for companies to better target its users. He noted the social media firm also reduced pricing, which is spurring more demand.

“We believe Twitter’s video ad product continues to perform well as advertisers continue to look for higher quality online video impressions,” he wrote.

As a result, the analyst raised his 2018 Twitter sales estimate to $2.75 billion from $2.69 billion.



Source link

About The Author

Related posts

Leave a Reply