Twitter’s stock bounces after J.P. Morgan raises price target ahead of earnings

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Shares of Twitter Inc. bounced 1.0% in premarket trading Tuesday, after J.P. Morgan analyst Doug Anmuth raised his price target ahead of the social-media company third-quarter earnings report due out later this week. The stock’s rally comes after it dropped 2.9% on Monday after closing at a 5 1/2-year high of $50.44 on Friday. Anmuth kept his rating at neutral, but raised his stock price target to $52 from $39, saying he expects “meaningful improvement” in ad revenue. “While [Twitter] likely still lags peers during the ad market recovery, we are confident that brand marketers have resumed spending, specifically as sports have returned & the economy has re-opened,” Anmuth wrote in a note to clients. “Based on our conversations, we believe investors expect positive revenue growth from [Twitter] in 3Q,” he wrote. The FactSet consensus for third-quarter revenue is $775 million, which implies a 5.9% year-over-year decline. The stock has run up 33.0% over the past three months through Monday, while the SPDR Communication Services Select Sector ETF has gained 6.1% and the S&P 500 has tacked on 5.0%.
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