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Investing.com — Twitter Inc (NYSE:TWTR) jumped 5.6% after getting a boost from JP Morgan as one of the bank’s top picks for 2021.
Analysts Doug Anmuth upgraded the stock to a buy-equivalent from neutral and bumped the price target to $65 from $52, according to StreetInsider.
Shares are trading at their highest since 2014, and are up more than 70% in 2020.
“We are bullish on online advertising in 2021 and expect industry growth to reaccelerate,” the analyst said in a note.
Twitter is expected to show the biggest rebound after a sharper ad decline in 2020, and a buyback plan should help support shares, JP Morgan said. The social media company is trading at a discount to rivals Snap Inc (NYSE:SNAP) and Pinterest (NYSE:PINS), which grow faster, but Anmuth said Twitter is “under-owned.”
The stock is trading at about 57 times forward price to earnings ratio, compared to Pinterest’s 104 times and Snapchat’s 417 times, according to Yahoo. While Twitter may seem cheap compared to those competitors, it’s expensive overall — the average PE ratio of Nasdaq companies is 21 times, according to Zacks.
JPMorgan (NYSE:JPM) is one of seven buy ratings on the stock. It has 19 holds and one sell, according to data compiled by Investing.com.
