Twitter Sees Price Target Bumps After Earnings; Analysts Cautious Over Twitter's DAU

Analysts reacted to Twitter Inc's TWTR Q2 earnings beat and bumped price target for the social media company. Some also raised concerns over slowing growth.

Oppenheimer analyst Jason Helfstein raised the price target on Twitter to $85 from $70, implying a 22.14% upside, and maintained an Outperform rating.

The solid Q2 results were strong as brand advertisers returned to the platform following a Q1 lull. Strong MAP/performance execution gives him confidence in Q4 upside despite record ad-spending.

Mizuho analyst James Lee raised the price target to $70 from $65, implying a 0.59% upside, and kept a Neutral rating. 

The ad revenue growth beat expectations, and guidance was vital due to the Tokyo Olympics and increased demand for brand advertising. However, he expressed concerns over Twitter's monthly daily active user growth in the U.S.

Truist analyst Youssef Squali raised the price target on Twitter to $80 from $70, implying a 15% upside, and sustained a Buy rating. 

The company's Q2 earnings beat reflects strong advertiser appetite and product improvements as the economy reopens. Twitter's quarter reflects strong monetization and further inroads with the brand.

Jefferies analyst Brent Thill raised the price target to $80 from $70 and retained a Hold rating. 

He also echoed concerns over the U.S. monthly DAUs decline. Thill is neutral on the stock given the valuation multiple is above Facebook Inc's FB despite Twitter's slower growth and lower long-term operating margins.

Piper Sandler analyst Thomas Champion raised the price target to $77 from $66, implying a 10.7% upside, and reiterated a Neutral rating.

Twitter continues to improve the platform, but Champion struggles to see the business reaching the 2023 monthly DAU guide from the Feb. investor day.

UBS analyst John Hodulik raised the price target to $69 from $62, implying a 0.8% downside, and affirmed a Neutral rating. He found the management less concerned around IDFA headwinds while its MAP/DR initiatives continue to see momentum. 

Twitter's Q3 revenue guidance indicates that either upfront related to the event landscape are solid or visibility into other headwinds/tailwinds have improved.

Barclays analyst Ross Sandler raised the price target to $60 from $48, implying a 13.8% downside, and maintained an Underweight rating.

The results were about as good, except for the U.S. DAUs, down 1 million sequentially. The shares deserve a higher multiple on the improved product cadence and financial performance, Sandler stated.

Morgan Stanley analyst Brian Nowak raised the price target to $68 from $62, implying a 2.3% downside, and repeated an Equal Weight rating. 

The Q2 results from Twitter and Snap Inc SNAP and the companies' Q3 guidance showcase the strength of the online ad markets and highlight the impact of multi-quarter innovation.

Canaccord analyst Maria Ripps raised the price target to $78 from $68, implying a 12.1% upside, and restated a Hold rating.

Twitter reported Q2 solid results as ongoing enhancements to the company's advertising technology stack, Ripps stated. The continued shift of ad budgets to digital platforms contributed to year-over-year revenue growth.

Price action: TWTR shares traded higher by 3.35% at $71.90 in the premarket session on the last check Friday.