NEW YORK (TheStreet) -- Twitter (TWTR) shares are down 2.2% to $40.54 in early market trading on Monday after analysts at Morgan Stanley initiated coverage on the company's shares with an "equal weight" rating and $42 price target.
The firm cited the social media company's slower than expected monthly average user growth as a reason for its even outlook while forecasting a deceleration in net ad revenue in 2015 and 2016.
On a positive note, the firm said that, "Monetization of registered users continues to improve, aided by a mix of higher priced ad units. Nevertheless, we view expectations to narrow the monetization gap with Facebook as optimistic given inherent differences in time spent and engagement vs. impression-based ad selling."
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