Twitter Inc.’s stock rose by more than 3% in Wednesday afternoon trading after a bullish analyst turned even more sanguine.
BTIG’s Richard Greenfield increased his price target on Twitter’s TWTR, +2.40% shares to $42 from $30, writing that the company is making smart moves to surface relevant tweets and enable content discovery. “Twitter is iterating the product faster than at anytime in its history, making the service more useful to user,” he said in a note to clients.
Greenfield’s new price target makes him the second-most optimistic analyst covering the microblogging company, according to FactSet data. The analyst expects that improvements to Twitter’s social-media platform will lead to continued growth in daily active users, which could help Twitter better make money from its services.
“More daily users who are increasingly engaged around content that interests them leads to an attractive platform for advertisers, driving ROI on campaigns,” he wrote.
Twitter recently decided it would change the way it reports usage, swapping out the monthly-active-user metric for count of “monetizable” daily active users, or those who engage with the service on a platform that is able to show ads. The company posted a 9% drop in daily active users on a year-over-year basis in the latest quarter. Those so-called monetizable daily active users climbed by 9%.
Of the 39 Twitter analysts surveyed by FactSet, 12 have buy ratings, 21 have hold ratings, and six maintain sell ratings. The average price target is $33.03, about 5% above current levels.
Twitter’s stock has fallen 3.6% over the past three months, while the S&P 500SPX, +0.30% has risen 1.1%. However, over the past year thus far, Twitter’s shares have gained 9.3%, more in line with the S&P 500’s 9.8% advance. The technology and internet-heavy Nasdaq Composite Index COMP, +0.08%meanwhile, has risen by more than 12% year to date and 3.2% in the past three months.
Twitter Inc. shares were unchanged in after-hours trading Wednesday. Year-to-date, TWTR has gained 8.28%, versus a 10.03% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of MarketWatch.