NEW YORK (TheStreet) -- Shares of Twitter Inc (TWTR) are up 1.53% to $38.42 in early market trading Monday, getting back some of its losses from last week, after the social media giant was upgraded to "hold" from "sell" by analysts at Stifel Nicolaus this morning.
The firm also removed its $36 price target on shares of Twitter.
Stifel analysts believe the recent share price decline has now limited the downside risk over the next year, and keeps its view that Twitter is mispriced relative to its growth prospects.
Also, Twitter plans to launch autoplay video by the end of June, according to Adweek.
San Francisco-based Twitter is a global platform for public self-expression and conversation in real time, where any user can create a tweet and any user can follow other users.
Insight from TheStreet's Research Team:
Twitter is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager and Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
Twitter ( TWTR:NYSE; $37.84; 1,400 shares; 2.03%; Sector: Technology): Twitter reported first-quarter 2015 results substantially below guidance, consensus expectations, and our own expectations which, admittedly, were too optimistic. We recognize the company is in the early innings of a potentially innovative turnaround that could propel the shares higher longer-term, but also would be remiss not to admit that this quarter did not instill the confidence we would have hoped for. We would argue that new initiatives will (likely) eventually support growth in the back half of the year, yet at the same time admit that details still need to emerge.
The TellApart acquisition brings a performance-marketer- focused retargeting solution, and while current period revenues are unknown, as late of 2013 the company was at a $100 million annual run rate. Next, Twitter announced an enhancement of its relationship with Google (GOOGL) involving the DoubleClick server, which suggests a potentially ground- breaking development that can be further monetized long-term.
Overall, we believe Twitter's long-term potential as a differentiated niche offering in digital advertising is mostly unchanged. Our price target is dependent on expectations that Twitter can capture a growing share of global digital advertising, and this view is not considerably affected by this week's results. As such, we take our price target down modestly to $52, from $55, and expect the shares to ultimately rebound from the meaningful selloff. We downgraded the shares to Two from One.
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Separately, TheStreet Ratings team rates TWITTER INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: TWTR Ratings Report