NEW YORK (TheStreet) -- Shares of Twitter (TWTR) are rising 1.75% to $37.75 in pre-market trading on Monday after the company had coverage initiated with a "market outperform" rating with a $49 price target by analysts at JMP Securities this morning.
JMP Securities believes that with its 284 million monthly active users generating 500-plus million tweets per day, Twitter is the real-time web that users worldwide increasingly turn to for instant news and information on most events.
The firm said its positive view on Twitter is based on a high barrier to entry given its global reach, differentiated content, product enhancements, deep advertiser relationships, early days in monetization, and expanding margins.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: