Twitter’s Neutral Rating Reaffirmed at Zacks (TWTR)
Twitter (NYSE:TWTR)‘s stock had its “neutral” rating restated by Zacks in a note issued to investors on Friday. They currently have a $47.00 price objective on the stock. Zacks‘s target price would suggest a potential upside of 6.50% from the company’s current price.
Zacks’ analyst wrote, “Twitter reported impressive second-quarter results, driven by strong user growth. Loss in the second quarter was narrower than the Zacks Consensus Estimate while revenues comfortably beat the same. Management provided optimistic guidance for the third quarter of 2014. We believe that new products such as app install ads and expanded MoPub features are the key growth catalysts. Moreover, Twitter’s ability to attract advertising revenues amid significant competition will be a key factor in determining its growth. Additionally, the recent foray into e-Commerce is a major positive, in our view. Further, as spending on online advertising is expected to increase manifold compared to traditional media, we believe that the company has massive growth opportunity, due to its strong position in mobile. International expansion and accretive acquisitions are other significant positives. However, higher operating costs and continuing investments in product development will hurt margins in the near term. Thus, we maintain our Neutral recommendation and set a price target of $47.00.”
A number of other firms have also recently commented on TWTR. Analysts at BMO Capital Markets raised their price target on shares of Twitter from $42.00 to $48.00 in a research note on Thursday. Separately, analysts at Bernstein raised their price target on shares of Twitter from $40.00 to $50.00 in a research note on Thursday. Finally, analysts at Wedbush raised their price target on shares of Twitter from $40.00 to $50.00 in a research note on Thursday. Four analysts have rated the stock with a sell rating, seventeen have issued a hold rating and thirteen have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $51.85.
Twitter (NYSE:TWTR) opened at 44.13 on Friday. Twitter has a 52 week low of $29.51 and a 52 week high of $74.73. The stock’s 50-day moving average is $39.36 and its 200-day moving average is $44.95. The company’s market cap is $26.284 billion.
Twitter (NYSE:TWTR) last announced its earnings results on Tuesday, July 29th. The company reported $0.02 earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.01) by $0.03. The company had revenue of $312.00 million for the quarter, compared to the consensus estimate of $282.44 million. During the same quarter last year, the company posted ($0.12) earnings per share. Twitter’s revenue was up 124.0% compared to the same quarter last year. Analysts expect that Twitter will post $0.09 EPS for the current fiscal year.
In other Twitter news, CFO Mike Gupta sold 181,675 shares of Twitter stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $44.79, for a total value of $8,137,223.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
Twitter, Inc (NYSE:TWTR) is a global platform for public self-expression and conversation in real time.
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