Twitter (TWTR) – Get Report is well positioned to “benefit from a big event landscape in 2021,” according to a Deutsche Bank analyst, who upgraded the microblogging platform to buy from hold.
Shares of the San Francisco company at last check were climbing 4.2% to $47.85.
Analyst Lloyd Walmsley set a share price target of $56, up from $36.
“Twitter is well positioned to benefit from a big event landscape in 2021, expansion into more performance advertising on the back of its ad server rebuild and new [mobile application promotion] product, and an eventual high-margin subscription product,” the analyst said in a note to clients.
Twitter user growth has benefited from the coronavirus pandemic, Walmsley said. But its focus on brand advertising – the weakest segment of the ad market – has resulted in poor revenue performance, holding back the shares from an otherwise good story in 2021.