Nomura Securities Downgrades Twitter (TWTR) to Neutral

Nomura Securities downgraded Twitter, Inc. (NYSE: TWTR) from Buy to Neutral with a price target of $45.00 (from $55.00).

Analyst Anthony DiClemente said, "Twitter modestly missed our 3Q user growth and engagement metrics; while the 4Q outlook came in higher than our existing model, particularly on adjusted EBITDA, implied users for 4Q bring us to lower our year-end Monthly
Active Users (MAUs) estimate, and we believe that user metrics will now take center stage. We soon head to company’s Analyst Day on 11/12, where we expect to hear more of a bigger picture view about Twitter products and user growth. As 2Q was an outright beat across the board with key metrics beating even aggressive estimates, the second derivative of (less) upside in the 3Q may temper the forward trajectory of user growth and monetization growth in investor models. We retain our constructive view on monetization and margins, but move to the sidelines and downgrade to Neutral."

For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.

Shares of Twitter, Inc. closed at $48.56 yesterday.

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