Shares of Twitter were up more than 13% on Wednesday after the San Francisco-based company said it finished 2020 on a high note, benefiting from a recovering digital advertising market. The company also offered an upbeat outlook, even as it missed Wall Street's estimates for audience growth.
Analysts were quick to both praise the company’s performance and adjust their one-year price targets. Jeffries analyst Brent Hill called the results “incrementally positive,” boosting his full-year 2021 revenue estimate by 5% and raising his price target to $64 from $52. He kept his hold rating on the company’s shares.
Piper Sandler analyst Thomas Champion raised his one-year price target to $61 from $45, noting that the results were helped by “monetizable daily active user growth from the U.S. election, and improvements made to products and advertising.” He has a neutral rating on the shares.
Baird analyst Colin Sebastian called the results “encouraging” and also noted that his team sees additional positive catalysts to come, including an improving live event calendar and a lower impact from upcoming changes to Apple/IDFA (Identifier for Advertising) than other advertising platforms. He raised his price target to $65 from $58 and kept his neutral rating on the shares.
KeyBanc analyst Justin Patterson was the most optimistic about Twitter’s fourth-quarter performance, raising his price target to a Wall Street-high of $80 from $65 on what he sees as a “full swing” recovery in Twitter’s advertising and continued success in boosting audience engagement and advertisers. Patterson kept his overweight rating on the stock.
At last check, Twitter shares were up 8.25% at $64.83.
Here's how Jim Cramer is approaching Twitter after earnings: