Twitter Inc (NYSE:TWTR) may have a “bumpy” evolution, but its platform is heading for the mainstream, analysts at Canaccord Genuity believe. They note that user growth remains a challenge, but they think Twitter’s got “levers” it can pull in order to battle the growth problem. As a result, they expect there to be some upward estimate revisions.

Twitter Inc (TWTR) Coverage Initiated With "Buy" Rating

Momentum expected for Twitter

In a report dated Sept. 11, 2014, analysts Michael Graham, Marla Ripps and Austin Moldow said their positive view on Twitter is based mostly on the momentum they expect in engagement and monetization. This is essentially the same drum bullish analysts at other firms are beating as well.

They expect that Twitter will begin to show momentum in both areas “over the next few quarters.” They also think that the micro-blogging company has done a good job of laying the groundwork for future benefits in growing engagement and monetization.

Twitter fights decelerating user growth

The Canaccord Genuity team said that for now, Twitter Inc (NYSE:TWTR) may not see an acceleration in monthly active users. However, they think “logged-out users could tilt the discussions favorably.” They’re also looking for a rebound in engagement metrics in the third and fourth quarter.

They do see “significant upside” to monetization, however, as the micro-blogging platform’s current monetization rate is less than half of competitor Facebook Inc (NASDAQ:FB)’s. The analysts also believe that Twitter’s new advertising products will enable it to close the gap with Facebook’s monetization rate quickly. They also see expansion in the company’s international monetization rate as being a significant help.

Changes probably ahead for Twitter

The analysts add that it’s still early in Twitter’s evolution and that it has a “unique platform.” They think the user experience on the platform will change a lot in the next few years. They wouldn’t be surprised if Twitter dumps the traditional 140-character tweet. They also expect most of the content on the platform to evolve into “richer forms of media” and for the “following” concept to turn into “more multi-faceted ways of sharing.”

At its very core though, they think Twitter will remain the only “real-time nexus for the connected world.” They see a great ability to use Twitter’s platform to impact public opinion and share the most interesting content in the world while also promoting products, services and people. The analysts expect Twitter to one day be on par with Facebook and Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG).

The Canaccord Genuity team initiated coverage of Twitter Inc (NYSE:TWTR) with a Buy rating and $62 per share price target.