NEW YORK (TheStreet) -- Twitter (TWTR) has been upgraded to "neutral" from "underperform" with a $43 price target, Sterne Agee said Wednesday. The firm said the previous "underperform" rating was based on slowing user growth, declining user engagement and a premium valuation.
"Driven by recent product changes, we see potential for user growth and engagement to improve in the near to medium term. Also, we think ad engagement and monetization remain healthy," analyst Arvind Bhatia wrote in the report.
The firm expects 2014 revenue of $1.26 billion and 2015 revenue of $1.93 billion.