After struggling to compete with Facebook (NASDAQ:FB) for roughly three years, Twitter (NYSE:TWTR) seems to finally be moving up the social (or financial) ladder. On Monday, Twitter shares soared after J.P. Morgan (NYSE:JPM) upgraded the San Francisco-based company from ‘hold’ to ‘overweight’. In fact, one J.P. Morgan analyst wrote to clients that Twitter is “one of our top” small-to mid-cap picks for next year.
The financial services company announced to their clients that they have upgraded the Twitter stock, stating that the new price target is $27. For perspective, J.P. Morgan used to have a $20 price target.
According to analyst Doug Anmuth, there are four main reasons why the company decided to upgrade the stock:
- It is forecasted that the company will have 10% daily active user growth in 2018
- J.P. Morgan believes the company should be “GAAP profitable” next year
- Live streaming and video features have significantly improved
- It is thought that Twitter could see advertising revenue growth be greater than 8% next year
So far this year, shares of Twitter are up 36%.
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