Shares of Twitter fell 0.3% to $34.27 in trading Thursday.
The Guggenheim analyst raised his price target on Twitter to $41 from $33. Morris's higher rating reflects better user engagement on the back of what he sees as positive changes management is making to the platform aimed at improving the user experience. Plus, the presidential election cycle, he thinks, could be a significant tailwind to both user engagement and advertising dollars.
Morris had initiated coverage on Twitter in early December 2018 witha buy rating and price target of $39.
Morris also raised his rating on Facebook to buy from neutral, and increased his price target to $200 from $175, saying "Investors will continue to gain comfort with the incremental financial risk created by content and privacy concerns."
Twitter shares have risen 19% year-to-date.
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