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Cascend Securities initiates Twitter at 22% upside

Published 04/12/2018, 07:57 AM
© Reuters.  Cascend Securities initiates Twitter at 22% upside
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  • Cascend Securities initiates Twitter (NYSE:TWTR) with a Buy rating and a $36 price target, a 22% upside to yesterday’s close.
  • Firm says Twitter has become a new company after its first profitable quarter in December and efforts to make ad buying easier.
  • Cascend says ARPU could grow and the firm’s indicator suggests slight acceleration in user growth after years of flat growth.
  • Cascend says the downside is Twitter’s expense as it’s currently trading at 40x CY19E but earnings are at an inflection point and a reasonable ARPU increase to $2 could bring EPS to above $1 or higher, which would make the valuation more reasonable.
  • Source: Briefing.com.
  • Twitter shares are up 0.9% premarket to $29.66.
  • Now read: More Write-Downs Are Coming For General Electric (NYSE:GE) - Cramer's Lightning Round (4/11/18)


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