SunTrust Sees Handful of Reason to Buy Twitter -- Market Talk

Today 7:38 AM ET (Dow Jones)

7:38 EDT - SunTrust Robinson Humphrey upgrades Twitter (TWTR) to buy from neutral with $45 year-end target. "While we believe the recent pullback was partially justified by User growth concerns and the share lock up expiration, we think several positives have been overshadowed," firm writes, including "rapid growth in monetization (up 76%)"; getting beyond initial selling after lockup expiration; "potential to increase its ad load vs. Facebook, which we estimate at <50% of Facebook's"; potential upside from "nascent businesses like video and MoPub"; and "rapidly expanding" Ebitda margins. Shares up 3.2% premarket at $33.08. (john.shipman@wsj.com; @jhcshipman)
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(END) Dow Jones Newswires
May 12, 2014 07:38 ET (11:38 GMT)
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