NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report were increasing in mid-morning trading on Friday as Oppenheimer increased its rating on the stock to "perform" from "underperform" after the social media company posted stronger-than-expected 2016 third-quarter results.
Before yesterday's opening bell, Twitter reported adjusted earnings of 13 cents per share, topping analysts' expected 9 cents per share. Revenue came in at $616.0 billion, above Wall Street's projected $605.8 billion.
Average monthly active users increased 3% year-over-year to 317.0 million, which beat analysts' estimates of 316.4 million.
The boost in revenue was largely driven by better-than-expected monetization and reaccelerated user growth, Oppenheimer said.
The stock's valuation now properly reflects Twitter's challenging fundamental outlook, the firm added.
"While there are many unknowns, such as the long-term impact of live streaming (on engagement, revenue and margins - from higher program and technical costs), product changes to reduce trolling, and the never-ending innovation by competitors, we now see risk/reward equally weighted...," the firm said in an analyst note.
UBS analysts also believe Twitter shares have a compelling risk/reward ratio, according to TheFly.
The firm has a "buy" rating and $22 price target on the stock.
Twitter reported stable to improving user growth and engagement as live video offerings "begin to bear fruit," UBS noted.
Wells Fargo analysts said they're unsure whether Twitter's increased emphasis on livestreaming will boost its overall results.
The firm maintained its "market perform" rating on Twitter shares, TheFly reports.
Additionally, Twitter's implied guidance remains weak, Wells Fargo said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Twitter as a Hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, the team finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: TWTR