Twitter Shares Up 3% After UBS Upgrade
In a note to clients titled - you guessed it - #UpgradeToBuy, UBS analyst Eric Sheridan and his team took their rating on the social media company to Buy from Neutral while putting a $65 price target on the stock.
UBS said positive momentum in the online digital advertising space will help Twitter, and the firm raised its revenue estimates for Twitter through 2018.
UBS now sees revenue totaling more than $6.2 billion 2018, up from previous expectations for about $5 billion.
Sheridan and his team write:
"In particular, our advertising checks indicate Twitter is seeing positive momentum with objective-based campaigns (pay-for-performance campaign formats), and we believe the launch of Promoted Video ads, the introduction of the 'Buy Now' button, the international self-serve ad rollout (11 new countries), and the addition of TapCommerce to Twitter's ad tech stack (which brings additional demand to the MoPub exchange) all position Twitter strongly along key secular growth areas within digital advertising."
UBS also raised its profit expectations for Twitter, as it sees revenue increasing without a huge increase in operating expenses.
Here's a full breakdown of UBS' new profit and revenue expectations for Twitter.
Since bottoming at $30.50 per share in May, Twitter shares have been on a tear this summer, and including Wednesday's gains, the stock is up more than 60% from its lows.
