Twitter higher as Wells Fargo joins upgrade parade

|By:, SA News Editor

Wells Fargo has become the sixth firm to upgrade Twitter (TWTR +1.8%) since its  May 6 lockup expiration, lifting shares to Market Perform albeit while keeping its $36-$39 valuation range.

Though admitting Twitter still trades at a premium to peers, Wells thinks its current valuation range is "supported by Twitter’s strong monetization ramp, new product introductions, and broad advertising interest."

Like many others, it's still worried about slowing user growth/engagement, and thinks declining activity among older demographics (more valuable to advertisers) "could present downside risk.."

Wells expects Twitter to end Q2 with 267M MAUs, up from 255M at the end of Q1 and in-line with Street expectations.

Previous upgrades