- Though Twitter (TWTR +2%) currently trades at 17x its consensus 2015 sales forecast, Deutsche's Ross Sandler (Buy, $60 target) estimates shares go for only 5.7x 2017 sales, assuming Twitter's ad load and prices end up matching those for Facebook's mobile news feed ads. He considers the ad price assumption conservative.
- Sandler adds Twitter can boost engagement (and with it, ad sales) for the 500M+ monthly unique visitors who aren't logged in by algorithmically creating "unique 'logged off' user experiences." He observes the average logged-off user only visits Twitter 1-2 times/day; those logged in visit 7 times/day.
- Shares are near their highest levels since March on a down day for equities. JPMorgan upgraded last Thursday.