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:

1. It is forecasted that the company will have 10% daily active user growth in 2018

2. J.P. Morgan believes the company should be “GAAP profitable” next year

3. Live streaming and video features have significantly improved

4. 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%.

Featured Image: depositphotos/cienpies

Author Caroline Harris

About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.