Twitter IPO target pushed up by Wall Street brokerages

By IVC Staff Reporter

Nov 01, 2013 10:23 PM EDT

On Friday, Morningstar united with three brokerages after setting price aim for Twitter Inc. above the IPO price. This suggested that the stock has potential to increase to around 30%.

Compared to the IPO of USD17 to USD20, a price aim of USD26 per share was set by The Wall Street brokerage on Friday. Back in October, Pivotal Research established a price aim of USD29 for Twitter, Topeka Capital at USD54 and SunTrust at USD50.

Recently, Twitter wrapped up the initial week of meetings with potential investors across the US. The social media micro-messaging company arrived at the New York Stock Exchange with half the revenue and users compared to Facebook Inc's debut back in 2012.

Twitter doubled the revenue to USD168 million in the third quarter, but profit has never been made. Losses had also widened along with the growth of costs.

Rick Summer, Morningstar's analyst, claimed Twitter's growth would form "critical mass" and would capture budget for advertisements. Summer added, "For example, the company recently agreed to a commercial deal with the National Football League to distribute proprietary content (short replays) to Twitter users."

Analysts claimed Twitter has the possibility of growth above the USD11 billion value deduced by the company. However, some analysts worried Twitter would not generate sufficient revenue judging from the significant growth in number of users.

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