Twitter's Stock Rallies After J.P. Morgan Analyst's Upbeat Note

MarketWatch Pulse

Twitter Inc.'s stock rallied 1.3% in premarket trade Monday, after an upbeat research note from J.P. Morgan, which said accelerating product launches and distribution deals should boost usage and ad revenue. Analyst Doug Anmuth reiterated his overweight rating on the social network company and stock price target of $67, which is 43% above Friday's closing price of $46.75. "While investor sentiment in the name has improved since 4Q earnings, we think considerable skepticism remains and Twitter's risk/reward is very compelling," Anmuth wrote in a note to clients. "We are encouraged by Twitter's heavy product launch cadence and we expect new products like Video, Instant Timeline, While You Were Away and the Logged-Out Homepage to improve the user experience and increase [monthly active users] over time." The stock has run up 26% in the past three months, while the S&P 500 has inched up 0.6%.

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