Twitter Downgraded At SunTrust Ahead Of First-quarter Results

MarketWatch Pulse

Twitter Inc.'s stock slipped 0.8% in premarket trade Monday, after SunTrust Robinson Humphrey downgraded the social network amid concerns over valuation ahead of first-quarter results, which are slated to be released after Tuesday's closing bell. Analyst Robert Peck cut his rating to neutral, after being at buy since May 2014, and his stock price target to $50 from $58. The stock has run up 23% since Twitter reported better-than-expected fourth-quarter results on Feb. 5, while the S&P 500 has gained 2.7%. While we are big believers in the long-term opportunity in front of Twitter and believe the company will report a strong Q1, we are lowering our rating to neutral as we think the negative risks create enough concern and likely result in a range-bound stock in the near term," Peck wrote in a note to clients. He said some of the risks include declining tweets per day and the second-quarter outlook for net monthly-active-user (MAU) additions could show deceleration.

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