Twitter: Recent Pullback Creates Opportunity But Reducing PT, Says Topeka
In a research report issued today, Topeka Capital analyst Victor Anthony reiterated a Buy rating on Twitter Inc (NYSE:TWTR) and reduced his price target to $60 (from $63), following what was supposedly a break-out 2Q. 3Q, was overall, an in-line quarter, and call commentary on 4Q guidance and on implied 4Q user growth was cautionary.
Anthony noted, “For a stock trading at a high multiple, although supported by high growth, an in-line quarter and cautious comments are likely to result in share price volatility (shares up 65% since the Spring). We believe management is managing Street expectations and ad growth and user growth for 4Q are likely to exceed guidance. The pullback should be viewed as an opportunity to own the stock.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 18.9% and a 64.2% success rate. Anthony has a 11.2% average return when recommending TWTR, and is ranked #42 out of 3349 analysts.