Twitter Initiated At Buy As Periscope Expands Offline Reach

Twitter Inc. was initiated at buy with a $65 price target at Jefferies on Wednesday, saying product improvements, such as newly-launched broadcasting video app Periscope, should increase engagement with the site. Analyst Brian Pitz said Twitter is now "well-positioned" to capture a meaningful piece of spend in the online video ads market, projected to reach $17 billion by 2017. "Periscope now provides a platform to support global broadcasts at scale," Pitz said. The app also enables Twitter's reach to extend beyond just the Twitter platform, which is one area Twitter has been trying to build out and monetize. Shares of Twitter increased 1.8% to $50.99 in premarket trade. They've climbed 40% over the last three months, compared with a 0.5% improvement for the broader S&P 500.