NEW YORK (TheStreet) --Shares of Twitter Inc. are up by 1.68% to $50.92 in pre-market trading on Wednesday morning, after analysts at Jefferies initiated coverage on the social media networking company with a "buy" rating and $65 price target. The firm began coverage on Twitter with this rating as it believes user engagement will increase as a result of product improvements. "We believe TWTR is a leader in the crowded social media space and is particularly well-positioned to benefit from online video ad and mobile tailwinds. Continued product improvements including more integrated video and the recent Periscope launch should help increase engagement. By 2017, online video ads could be a $17B+ /year opportunity in the U.S. and TWTR is well-positioned to capture a meaningful piece of that spend," Jefferies said in an analyst note this morning.For more on Twitter click here. 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, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet." Highlights from the analysis by TheStreet Ratings Team goes as follows: TWTR's very impressive revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues leaped by 97.4%. Growth in the company's revenue appears to have helped boost the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. The gross profit margin for TWITTER INC is currently very high, coming in at 83.91%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -26.16% is in-line with the industry average. Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 10.27 is very high and demonstrates very strong liquidity. Compared to other companies in the Internet Software & Services industry and the overall market, TWITTER INC's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: TWTR Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
Click to view a price quote on TWTR.
from Latest TSC Headlines http://ift.tt/19EwWah
No comments:
Post a Comment