UPDATE: Atlantic Equities Upgrades Twitter

In a note released Thursday, Atlantic Equities analyst James Cordwell upgraded Twitter TWTR from Underweight to Neutral and Maintained a $35 year-end price target. To begin the note, Corwell wrote, "We continue to have some concerns regarding the company's longer term growth potential, but improving engagement trends, continued strong revenue growth and a more reasonable valuation leaves the risk reward more balanced at current levels in our view." In terms of engagement, Cordwell notes that, although his concerns have not been "fully alleviated," Q1 has provided increasing sequential net adds, as well as flat timeline views per MAU compared to Q4. Cordwell noted a topline revenue growth of 119 percent year-over-year in Q1 which is a three-point increase from Q4. Although Cordwell and the Street expect this to "decelerate" moving forward, Cordwell acknowledged the possibility for acceleration, based on a continuing ease in comps, improving user engagement and a "significantly undermonetised" international user base. To conclude, Cordwell noted that Twitter is now trading more in line with peers on a fiscal year 2014 revenue multiple-to-growth basis after opening at a "significant premium."