Credit: Investing.com -
Investing.com - Shares in Twitter were nearly 2% higher in pre-market trade after positive analyst comments regarding President Donald Trump's use of the social media platform.
BTIG upgraded Twitter to buy from neutral with a $25 price target on Wednesday in a note titled "The Twitter President gives Twitter a second chance".
"Our upgrade of Twitter is premised on the belief that Twitter's daily active user growth is accelerating, particularly in the U.S., which has a disproportionate impact on Twitter's revenues and profits," BTIG analyst Richard Greenfield said in a note.
Greenfield cited the growing number of downloads of the application on iOS devices along with a recent survey showing increased daily usage.
"It is undeniable that Twitter has been thrust into the global zeitgeist following the U.S. Presidential election in November 2016," he said.
Greenfield warned however that BTIG did not expect an immediate upturn in financial benefits given the downturn seen in 2015 and 2016 and further warned that fourth quarter earnings out on Thursday along with commentary on the first quarter was unlikely to excite investors.
"However, we believe second half 2017 revenues could exceed investor expectations with 2018 well above consensus," Greenfield explained.
By 8:15AM ET (13:17GMT), shares (NYSE: TWTR ) were up 2.3% at $18.67, compared to Tuesday's closing price of $18.26.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
