MKM Partners Reiterates a Hold Rating on Twitter

By Carrie Williams

In a report released today, Rob Sanderson from MKM Partners reiterated a Hold rating on Twitter (NYSE: TWTR), with a price target of $18.50. The company’s shares closed last Friday at $18.55.

Sanderson observed:

“We are updating our forecast, introducing 2018 estimates and maintaining our $18.50 fair-value assessment. We are encouraged by management commentary on inflection on engagement metrics and see significant potential behind Live events, but are discouraged by financial results and continued turnover of senior management. We believe there is still an expectation for M&A bolstering the stock price. We think TWTR is a unique asset with potential strategic value for an acquirer but believe the implied purchase price is too high given inherent risk in turning the network around.”

According to TipRanks.com, Sanderson is a 3-star analyst with an average return of 1.8% and a 56.0% success rate. Sanderson covers the Technology sector, focusing on stocks such as Angie’s List Inc., Alibaba Group, and Facebook Inc.

Currently, the analyst consensus on Twitter is Hold and the average price target is $17.94, representing a -3.3% downside.

In a report issued on October 31, Nomura Holdings also reiterated a Hold rating on the stock with a $13 price target.

Based on Twitter’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $616 million and GAAP net loss of $103 million. In comparison, last year the company earned revenue of $569 million and had a GAAP net loss of $132 million.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TWTR in relation to earlier this year. Most recently, in February 2016, Anthony Noto, the CFO of TWTR bought 15,500 shares for a total of $249,085.

Twitter, Inc. is a global platform for public self-expression and conversation in real time. It provides a network that connects users to people, information, ideas, opinions, and news. The company services include live commentary, live connections and live conversations. Its application provides social networking services and micro-blogging services through mobile devices and the Internet. It can also be used as a marketing tool for businesses. Twitter was founded by Jack Dorsey, Christopher Isaac Stone, Noah E. Glass, Jeremy LaTrasse, and Evan Williams on March 21, 2006 and is headquartered in San Francisco, CA.