Oppenheimer Initiates Coverage On Twitter, Believes Stock Is Appropriately Priced At Current Levels

Loading...
Loading...

Analysts at Oppenheimer initiated coverage of Twitter Inc TWTR Friday by issuing a Perform rating and setting a $36.00 price target. Twitter is a global social networking platform with over 280 million active users.

The Numbers

While Oppenheimer analysts fully recognize the strength in Twitter as a company, they believe that Twitter’s stock is appropriately priced at current levels. “While TWTR is the best Internet platform for real-time content discovery, we believe that the stock’s current valuation of 10x 2015E sales, a 52% premium to peers, fully reflects future prospects based on current growth rates.”

Insider Dumping

Between November and December 2014, Twitter insiders have sold more than $75 million of Twitter stock at prices ranging between $36 and $42 per share.

Loading...
Loading...

Modest Downside

Twitter stock is up about 1 percent  at $37.37 on the news. Oppenheimer's $36 price target represents about a 2.7 percent downside for the stock from current levels. Twitter stock has had a rough 2014, down more than 41 percent year-to-date.

Other Analyst Action

In November, Monness Crespi & Hardt initiated Twitter stock at Neutral and set a $40 price target. Earlier this week, Pivotal Research Group upgraded Twitter from Hold to Buy and issued a $42 target.

Loading...
Loading...
Posted In: Analyst ColorShort IdeasPrice TargetInitiationAnalyst RatingsTrading IdeasOppenheimer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...