Twitter shares gain the most in nine weeks on Tuesday as Morgan Stanley upgrades the stock to “Equal Weight”, raises price target

April 18, 2018 7:19 am

Morgan Stanley was reported to have upgraded Twitter Inc to “Equal Weight” from “Underweight” previously, as the bank cited constructive dialogue with advertisers, expanding user base as well as positive revisions, which make the stock “a more compelling risk/reward”. Morgan Stanley also revised up its price target for Twitter to $29 from $28 previously.

Twitter shares closed higher for the first time in the past five trading sessions on Tuesday. It has also been the sharpest daily surge since February 8th. The stock went up 11.41% ($3.26) to $31.84, after touching an intraday high at $32.06, or a price level not seen since March 26th ($32.47).

In the week ended on April 15th the shares of the social media company added 2.35% to their market value compared to a week ago, which marked the first gain out of four weeks.

However, due to yesterday’s gain, the stock has neutralized earlier losses and is now up 9.76% so far during the current month, following an 8.95% slump in March.

For the entire past year, Twitter shares rose 47.30% following a 29.56% slump in 2016.

“We believe Twitter’s video ad product continues to perform well as advertisers continue to look for higher quality online video impressions”, Morgan Stanley analyst Brian Nowak wrote in a note to clients on Tuesday.

Nowak now forecasts full-year 2018 sales of $2.75 billion, up from $2.69 billion, as expected previously.

The analyst also revised up his forecast on Twitter’s earnings before interest, taxes, depreciation and amortization (EBITDA) and now projects a 6% growth in 2018 and a 9% growth in 2019.

According to CNN Money, the 32 analysts, offering 12-month forecasts regarding Twitter’s stock price, have a median target of $28.00, with a high estimate of $40.00 and a low estimate of $14.50. The median estimate is a 12.06% decrease compared to the closing price of $31.84 on April 17th.

The same media also reported that 21 out of 39 surveyed investment analysts had rated Twitter’s stock as “Hold”, while 7 – as “Sell”. On the other hand, other 7 analysts had recommended buying the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Twitter stock are presented as follows:

R1 – $32.08
R2 – $32.32
R3 (Range Resistance – Sell) – $32.56
R4 (Long Breakout) – $33.29
R5 (Breakout Target 1) – $34.13
R6 (Breakout Target 2) – $34.69

S1 – $31.60
S2 – $31.36
S3 (Range Support – Buy) – $31.12
S4 (Short Breakout) – $30.39
S5 (Breakout Target 1) – $29.55
S6 (Breakout Target 2) – $28.99

By using the traditional method of calculation, the weekly levels of importance for Twitter Inc (TWTR) are presented as follows:

Central Pivot Point – $29.02
R1 – $30.04
R2 – $31.32
R3 – $32.34
R4 – $33.36

S1 – $27.74
S2 – $26.72
S3 – $25.44
S4 – $24.16

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