Boston, MA 01/20/2014 (wallstreetpr) – Twitter Inc (NYSE:TWTR) had a rough start in 2014 after the stock made impressive rally in December. The stock’s undoing was a series of bearish articles authored by analysts who sought to warn investors over investing in the stock. However, sentiments are once again changing and investors are invited to consider buying the stock for the impeding gains.
Analysts’ sentiments on TWTR
Ahead of the Friday’s trading last week, Stifel Nicolaus became the latest equities research firm to propose a buy on the stock. The firm, launching coverage of the stock, issued a price target of $75, higher than the stocks historic price since IPO. Stifel urges that the company shows numerous potentials and attractive metrics whose strength exceeds the valuation concern that many investors and analysts have often raised when discussing the stock.
Prior to the Stifel note, Goldman Sachs (NYSE:GS) raised its price target on the stock from $46 to $65. As if to give credit to Goldman Sachs bullish sentiment, the stock hit $64.69 on Friday before settling down to $62.20 with a 2.69 percent gain from the previous closing.
While analysts’ price targets are just numbers, the percentile upside potential of the stock as indicated by the price estimates suggest that while the stock may not rise to the exact levels, it has the potential of benefit investors who buy it now when it is trading below $65.
Bearish views
The wave of bearish sentiments which sent the stock tumbling in the past few weeks was ignited by analysts who raised concerns about the company’s ad revenue prospects. It became apparent that Twitter Inc (NYSE:TWTR) was after all not better placed to gain from the increased ad spending than its rival Facebook Inc (NASDAQ:FB). Moreover, the launch of video ads by Facebook also served to cool the stock on its tracks.
What has changed?
Twitter Inc (NYSE:TWTR) hasn’t made any big announcement of late to warrant change of heart by analysts. However, the stock is now being touted as a buy given that the initially issued bearish notes were overblown and thus served unjust judgment to the stock’s prospects.
Analysts now agree that Twitter Inc (NYSE:TWTR)’s stock volatility will end up putting money into the pockets of traders who play their game well, and that the company’s foray into brand advertising will benefit long-holder investors.
