Twitter Rated A Buy At Goldman, Bank Sees Upside For Shares

on December 02 2013 7:11 AM
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Goldman Sachs analyst Heath Terry on Monday put a buy rating on shares of recently public social media giant Twitter Inc. (NYSE:TWTR) and set a $46 price target for the shares.

"We launch coverage of Twitter with a buy rating ... as we believe there is substantial long-term value in Twitter's potential to become the leading platform for real-time mass communication," Terry wrote to clients.

Goldman Sachs was the lead underwriter on the Twitter IPO and as such the firm has been in a quiet period for the past several weeks.

"As Twitter grows users, engagement and monetization through product enhancements, geographic expansion and advertiser adoption, we see opportunity for growth acceleration and positive estimate revisions," Terry concluded in his note to clients. "While its growth trajectory is unlikely to be linear, we believe these revisions will, over time, justify considerable upside."

Twitter closed on Friday at $41.57.

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