Twitter Inc Multi-Year Turnaround Only Just Beginning

BTIG's Richard Greenfield praises the TWTR management's team savvy efforts to realize a "far more engaged user base."

It’s a good day to be a Twitter Inc (NYSE:TWTR) investor as sentiment starts to take a positive turn for this comeback player in the tech-verse. Between Stifel Nicolaus leaving the bears to join the sidelines and a bull opting to get even more bullish on the company’s revival, shares are surging 4% in trading today.

BTIG analyst Richard Greenfield spotlights the social media platform as a company in its “early stages” of what should become “a multi-year turnaround.”

Predicting that this company is about to be “too valuable to remain independent,” and wagering that a compelling acquisition prospects rests in this platform, the analyst reiterates a Buy rating on TWTR stock while lifting the price target from $25 to $30, which implies an 18% upside from current levels. (To watch Greenfield’s track record, click here)

Greenfield explains his increasing confidence in the company’s leadership and ability to execute a victorious rally back: “Twitter management has refocused the company on its core product, pushed their product team to iterate far faster than ever before in the company’s history (including breaking long-held company beliefs such as 140 characters), embraced video creating a platform for premium content creators which is ‘brand-safe’ for advertisers and most importantly made the Twitter user experience more compelling by showing consumers the tweets they care most about through AI and machine learning (not to mention using that same tech to reduce the level of spam/trolling). The end result has been not just more users of the Twitter platform, but a far more engaged user base coming back more often on a daily basis and spending significantly more time on the platform each day (global DAU growth chart shown embedded to the right).”

Ever since the analyst decided to take the gamble and join the bulls, he notes the last 11 months have been “extremely volatile.” Yet, Greenfield is not fazed, understanding the company’s “recovery will not be a smooth straight-line, with much work to be done on the product.” However, with TWTR’s team hard at work to gain its way back into the good graces of ad buyers and progress already seen in the last half a year alone, Greenfield is keeping his bullish bet.

TipRanks points to a cautious camp that roars with more pessimism than optimism on the social media player. Based on 24 analysts polled in the last 3 months, 4 are bullish on Twitter stock, 15 remain sidelined, while 5 are bearish on the stock. With a loss potential of 18%, the stock’s consensus target price stands at $20.90.