Top Analyst Pounds the Table on Twitter (TWTR)
Twitter (NYSE:TWTR) has been promoted to one of Wall Street’s major leagues, and investors are clearly convinced the company’s momentum and long-term growth is compelling, pushing its stock price higher Tuesday. On Thursday, the social media giant will officially join the S&P 500, and will be added to the Internet Software & Services Sub-Industry Index effective prior to the market open on June 7th .
Aegis Capital analyst Victor Anthony commented, “We had called out S&P 500 inclusion for Twitter in our double upgrade of the shares from Sell to Buy on January 16th. With this catalyst out of the way, we see more: 1) the World Cup next week should lead to higher International revenue contribution from video ads; 2) the media partnerships including with Disney/ESPN, Viacom, and NBC Universal, should drive higher engagement on Twitter and drive incremental ad revenue, helping to partially offset tough 2H comps; and 3) early ad checks are positive and unique visitor and time spent data have been healthy, suggesting that we are likely to see upside to our 2Q18 revenue estimate of $700M (FactSet consensus $697M) and Adj. EBITDA of $266M (FactSet consensus $261M). We are maintaining our near-term estimates but it is conceivable to expect estimates to increase closer to 2Q18 earnings.”
Anthony reiterates a Buy rating on TWTR stock, with a price target of $40, which represents a slight upside potential from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a yearly average return of 18.6% and a 69.6% success rate. Anthony has a -11.4% average return when recommending TWTR, and is ranked #72 out of 4819 analysts.
Not everyone out on Wall Street is quite as excited regarding this social media player’s upside potential as Anthony, considering TipRanks analytics showcase TWTR as a Hold. Out of 21 analysts polled in the last 3 months, 5 are bullish on Twitter stock, 15 remain sidelined, and 1 is bearish on the stock. With a dowdside potential of nearly 20%, the stock’s consensus target price stands at $31.94