Story updated at 9:55 a.m. to reflect market activity.
Shares of Twitter gained 3.5% to $52.36 in morning trading.
The analyst firm raised its price target for the social network company to $65 from $50. Twitter should benefit from an improved digital advertising outlook, according to UBS analysts Eric J. Sheridan, Vishal J. Patel, and Timothy E. Chiodo.
The analysts also raised EPS estimates for Twitter through 2018. UBS now expects the company to report earnings of 16 cents a share for 2014, up from its previous estimate of 13 cents a share. The analysts expect earnings of 48 cents a share for 2015, up from 31 cents a share, and 99 cents a share for 2016, up from 55 cents a share.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.