Twitter Inc (NYSE:TWTR)’s Buy rating has been reaffirmed by Deutsche Bank analysts in a report released on Tuesday, October 7th. Analyst Ross Sandler assigned a price target of $60 to the stock, and noted potential opportunities for growth related to logged-off users.
Twitter has potential to double revenue by 2017
Sandler said that Twitter Inc (NYSE:TWTR) shares have recovered after the lock-up expiration. Even though investors are getting used to the “logged-in MAU” and revenue trajectory, “we sense a general lack of clarity around the “logged-off” opportunity.” If Twitter is able to enhance its focus on “mobile content discovery and execute on logged-out,” then, according to the analyst, there is a possibility to double both revenues and market cap.
Twitter gets unique users from numerous traffic sources, and Sandler believes that these channels would help the platform “algorithmically create unique “logged-off” experiences for users, eventually leading to a higher engagement. Sandler admits that “logged-out” users are “vastly” different from logged-on users, but believes that if somehow Twitter is able to attract such users just 1 or 2 times a day, then there is a good chance for the micro-blogging company to double revenues by 2017.
Verdict of other analysts
Several other analysts have also given their their opinion on the company recently. In a research note on October 2nd, analysts at JPMorgan Chase & Co. upgraded the stock from Neutral to Overweight. They also raised their price target from $54.00 to $64. Zacks analysts, in a research note on September 18th, reiterated their Neutral rating on Twitter with a price target of $53. In a research note on September 11th, Canaccord Genuity initiated coverage on the stock with a Buy rating and a price target of $62.00.
Overall, four analysts have a Sell rating on the stock, seventeen have a Hold rating, and fifteen have recommended the stock as a Buy. Presently, Twitter Inc (NYSE:TWTR) has a consensus rating of Hold and an average price target of $52.18.
Year to date, shares of the micro-blogging company are down over 9%. As of September 15th, short interest in Twitter totaled 24,570,198 shares, which is an increase of 13.9% from the August 29th total of 21,579,104 shares. Twitter shares have seen a 52-week low of $29.51 and a 52-week high of $74.73.