Twitter Hits Highest Since 2014 After JPMorgan Turns Bullish
(Bloomberg) -- Twitter Inc. shares climbed to a multi-year high on Wednesday, extending a recent advance after JPMorgan upgraded the social-media company to an overweight rating, citing a more bullish view toward online advertising in 2021.
The firm also raised its price target to a Street-high view of $65 from $52.
While growth should re-accelerate across the digital ad industry next year, Twitter “will show the biggest rebound given its sharper pandemic-driven ad decline,” analyst Doug Anmuth wrote. It should also benefit from “revenue prioritization throughout the company, early benefits from re-built ad tech,” and increases in both advertiser count and ad load.
Shares gained as much as 6%, with the stock on track for a fifth straight positive session and at its highest since October 2014. The stock has soared more than 40% off a low hit in early November, in the aftermath of the company’s third-quarter results.
Twitter shares are up more than 70% in 2020, underperforming Snap Inc. and Pinterest Inc., both of which have more than tripled thus far this year. Facebook Inc., by far the largest social-media company, is up less than 35% in 2020.
JPMorgan wrote that Twitter is under-owned by investors, and the firm prefers the company’s risk profile over that of Snap or Pinterest. While those two names have faster growth, it wrote, Twitter trades at “a substantial discount” to them.
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