Give Twitter (NYSE:TWTR) stock Initial rating

Source: Internet
Author: User
Keywords Goldman Sachs awarded strongly
Tags analysis buy rating giants it is stock twitter user user growth

In Monday, Wall Street 5 giants such as Goldman Sachs, Deutsche Bank, JPMorgan Chase, Morgan Stanley and BofA Merrill announced their initial ratings to Twitter (NYSE:TWTR) shares. 5 of the investment banks had a strong disagreement, 2 gave a buy rating, 2 gave a neutral or similar rating, and 1 were rated as equivalent.

Goldman Sachs has announced that it is giving Twitter its initial rating at a target of $46 trillion, meaning it has about 11% more room to rise. Goldman Sachs says the main reason for doing so is attractive user growth and commercial opportunities.

"We decided to give Twitter a credit rating, and we believe that Twitter is a huge long-term value in the potential of the public to be the leading platform for real-time communication," said Heath Terry, Goldman Sachs analyst. With the growth of Twitter users, the increased use of time, the commercialization of product improvements, geographical expansion, and the acceptance of advertisers, we expect Twitter to have the potential for accelerated performance growth and a fiscal hike. While its growth curve is unlikely to be linear, we believe that, over time, the rise in performance expectations will support a significant rise in stock prices. ”

Goldman Sachs predicts that Twitter's earnings for the 2013 fiscal year are expected to be $3.37 trillion, with a revenue of 623.2 million dollars, 71 cents in the 2014 fiscal year, 980.3 million dollars, and 2015 cents in turn, 72 dollars in the year.

Deutsche Bank announced that it would set the initial Twitter rating as a buy, with a target price of 50 dollars. "Among the companies we study, Twitter is one of the best investments in the Mobile world, with 76% of its traffic and 70% of its advertising revenue coming from the mobile side," said Sander, an analyst at Deutsche Bank. In addition, our perimeter research shows that there is a range of commercialization and product improvement opportunities in the evolution of Twitter after the IPO, although these are within our expectations, but they should drive a significant increase in the average market expectations. ”

JPMorgan announced it would set its initial rating for Twitter to be neutral with a target price of 40 dollars. Morgan Stanley pointed out that the initial rating of Twitter as a flat-holder. BofA Merrill Lynch announced its initial rating of Twitter as less than the market, with a target price of $36 trillion.

Twitter's shares closed at $41.57 in Friday, and the trading range has been 38.80 to 50.09 dollars since its IPO.

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