- Wells Fargo initiates coverage on Twitter (TWTR) with a Market Perform rating and valuation range of $36-39, saying the opportunity of the transformative platform is priced in.
- "While we view Twitter as a transformative social platform with abundant opportunity to expand its audience scale, consumer value proposition, and advertising utility, we believe current valuation reflects our near- to medium-term optimism," analyst Peter Stabler said.
- "We established FY2013E and FY2014E revenue of $645M and $1,107M and adjusted Ebitda of $64M and $148M, with non-GAAP EPS of -$0.20 and -$0.01, respectively. Though our valuation range embeds a significant premium to mean multiples of our Internet coverage, we believe a premium is warranted due to rapid growth, differentiated mass media partnerships, mobile content consumption trends, and an industry shift toward deep data targeting and programmatic execution."
- TWTR closed at $41.00 Friday, with a 52 week range of $39.40-$50.09.