Twitter (TWTR) - Get Report shares were higher on Thursday after analysts at KeyBanc upgraded the microblogging site's rating to overweight, saying they expected long-term revenue growth as the company improves the experience on the platform for advertisers and users.
"Our view is that execution is improving, and the combination of a cyclical ad recovery and new products creates potential for revenue to outpace our above-consensus revenue estimates in 2021 and 2022," they wrote in a research note.
KeyBank expects Twitter revenue to rise by more than 20% annually.
Shares of the San Francisco company at last check rose 5.9% to $51.04.
KeyBanc analysts Justin Patterson and Sergio Sugura said Twitter has made “meaningful strides to improve its platform for users and advertisers.”
The analysts' previous rating was sector weight. They affirmed a price target of $65 on Twitter's shares. That target indicates 35% upside from the stock's closing price on Wednesday.
On Tuesday, the microblogging site acquired newsletter startup Revue in a bid to build additional revenue streams through subscription products.
Twitter said the service would bring subscription revenue to writers on the platform through paid newsletters.
On Jan. 13, MKM Partners analyst Rohit Kulkarni upgraded Twitter to buy from neutral and raised his price target to $60 a share from $47.
This month, Twitter permanently suspended accounts of former President Donald Trump and a prominent supporter, MyPlliow Chief Executive Mike Lindell, saying they had violated the site's user policies.
Following the Jan. 6 attack on the Capitol by Trump's supporters, Twitter suspended 70,000 accounts sharing QAnon- associated content, TheVerge reported.
Twitter is expected to report fourth-quarter results after the market close on Feb. 9.