- 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