Pivotal Downgrades Twitter (TWTR) to Hold Following Recent Run

Pivotal Research downgraded Twitter, Inc. (NYSE: TWTR) from Buy to Hold with a price target of $51 (unchanged). The downgrade is tied to valuation.

"The stock has reached a price which we consider to be fair. Our view on the operations of the company remains favorable, but a valuation-based ratings change is often necessary on this stock as its moves often reflect over-reactions (in either direction) from the market-at-large," said analyst Brian Wieser.

"... the stock has risen 47% in the past three months and we think it is time to take money off the table as the market momentum that has driven the stock towards what we consider fair value could just as well reverse itself. For example, yesterday’s 6% upward move seemed somewhat extreme, not least as we think that supporting factors such as recent news that Twitter would be launching auto-play video ads should already have been baked into estimates given long-held expectations that the company would incorporate more video-based ad products into its offering," he added

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 $51.47 yesterday.

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