In a research report published Monday, Canaccord Genuity analyst Michael Graham reiterated a Buy rating on Twitter Inc (NYSE:TWTR) with a price target of $56, which implies an upside of 39% from current levels.

Graham explained, “We believe Twitter’s business offers perhaps the best potential for EPS growth and upside in the sector. Monetization on the platform remains at low levels, and margins are currently far below target levels. That said, fairly slow MAU growth and lack of consensus regarding the value that should be ascribed to “non-MAU” usage remain overhangs.”

The analyst continued, “In the short term, we have a tough time mustering conviction on MAUs, and acknowledge potential slowness here to be a material risk factor for the stock. Longer term, we believe that Twitter will achieve more complete monetization of its various types of users, reinforcing investor confidence in the large size of the company’s daily audience.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Graham has a total average return of 12.5% and a 57.6% success rate. Graham has a -10.5% average return when recommending TWTR, and is ranked #230 out of 3420 analysts.