Twitter’s stock bounces toward snapping 6-day losing streak after MKM analyst raises rating, price target

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Shares of Twitter Inc. bounced 1.8% in afternoon trading Wednesday, putting them on track to snap a six-day losing streak, which would be the longest in three years, after MKM Partners analyst Rohit Kulkarni upgraded the social media company, saying the headwinds that have weighed on the stock recently are likely to reverse this year. The stock has lost 13.7% over the past six days, fueled by the company’s permanent suspension of President Trump, a prolific tweeter, citing risk of further incitement of violence in the wake of the violence at the U.S. Capitol last week. But MKM’s Kulkarni raised his rating on Twitter to buy from neutral, while lifting his price target to $60 from $47. “As 2021 progresses, we believe Twitter will have the greatest incremental benefit (vs. its social media peers) as brand advertisers accelerate ad spend and live events and product launches resume their normal cadence,” Kulkarni wrote in a note to clients. “Aided by easier [year-over-year comparisons] and growing focus on monetization, we believe Twitter would have improving fundamentals as the year progresses, i.e. revenue growth acceleration and possibly, improving margins. He said pressure from activist investors and management’s stock buyback plans will act as support for the stock. Twitter shares have edged up 1.9% over the past three months, while the S&P 500 has gained 8.6%.
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