Suntrust Analyst Bob Peck’s Note on TWTR Twitter Upgrade

Suntrust Analyst Bob Peck’s Note on TWTR Twitter Upgrade

Suntrust Analyst Bob Peck’s Note on TWTR Twitter Upgrade. Sentiment Low & Catalysts Coming. We are upgrading TWTR to Buy from Neutral. Given sentiment has washed out (stock down ~50% from 1Q’15-end), a series of positive catalysts, and attractive valuation with a strategic floor, we are cautiously optimistic. Our upgrade is predicated on a quick mgmt. clarification (likely ~Labor Day) and execution. Importantly, we believe the 2nd derivative is now positive (i.e. more upside potential than down). While TWTR has near term challenges and our ests are inline with St., we think user metrics have at least stabilized and can grow from the below catalysts.

This Note is from Sept 1st.