Will This Upgrade Help Twitter (TWTR) Stock Today?

Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Twitter (TWTR) was upgraded to "buy" from "neutral" by UBS (UBS) Wednesday.

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TWTR Chart TWTR data by YCharts

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.

More from Markets

Stocks Rise After Trump's Decision on ZTE

Stocks Rise After Trump's Decision on ZTE

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter