Twitter’s stock rallies toward 3-year higher after J.P. Morgan boosts target to $50
Shares of Twitter Inc. rallied 1.8% in premarket trade Tuesday, putting them on track to open at a three-year high, after J.P. Morgan analyst Doug Anmuth boosted his price target to $50, which is now the highest among the 37 analysts surveyed by FactSet. The new target, up from $39, is 21% above Monday’s stock closing price of $41.42. The social media company’s stock has gained in 12 of the past 13 sessions, soaring 26% during that stretch. “Industry conversations suggest the value for advertisers on [Twitter] is increasing, driven by double-digit [daily active user] growth (6 straight quarters), improving product for both users and marketers (especially video), higher [click through rates] and ad engagement, and better pricing as cost per engagement (CPE) continues to decline (we estimate -29% in ’18),” Anmuth wrote in a note to clients. With soccer’s World Cup kicking off this week, Anmuth said he believes Twitter will serve has a “powerful platform for fans to learn ‘What’s Happening Now’ and to engage in conversation around matches.” The stock has soared 72.5% year to date through Monday, while the S&P 500 has gained 4.1%.