Should you buy Twitter stock after Truist Securities raised target to $ 74?

Twitter (NYSE: TWTR) shares continue to trade in a buy zone after Truist Securities upgraded TWTR from Hold to Buy with a target price of $ 74. Twitter stock could move back above the $ 70 resistance level this April; however, should the US stock market enter a major correction phase, the stock price could be at a much lower level.

Fundamental Analysis: Truist Securities upgraded TWTR from Hold to Buy with a target price of $ 74

Twitter stocks have found strong support above $ 60 and there is currently no risk of positive trend reversal. Twitter reported fourth quarter results in February; Total revenue rose 27.7% year over year to $ 1.29 billion, while GAAP earnings per share were $ 0.27 (+ $ 0.11) for the fourth quarter.

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Total revenue exceeded expectations (+ $ 100M) while monetizable daily active users increased 27%. Twitter has been stable in challenging market conditions, and management expects first quarter revenue to range between $ 940 million and $ 1.04 billion.

The company also announced that it will have at least 315 million users by the end of 2023, and plans to “at least” double annual revenue by then. It’s important to say that more than 80% of Twitter’s revenue comes from branded advertising budgets and less than 20% comes from performance.

The long term goal is to change this to a 50/50 ratio. The company reported that it is researching a subscription-follow model it calls “Super Followers”. Using this model, users could pay for exclusive content that is not available to normal followers.

Last month, Citigroup raised its price target on Twitter to $ 80 and reported that Twitter should benefit from investment decisions.

“The company is making cautious investments that will fuel sales growth, and while they” are likely to dampen short-term profits, we think they are smart. Twitter has invested money in people, technology and acquisitions and is now largely on the right track, ”said Jason Bazinet, Citigroup analyst.

Last week, Truist Securities upgraded TWTR from Hold to Buy with a target price of $ 74, in the expectation that the company could grow its sales even faster in the coming years. Twitter stock could move back above the $ 70 resistance level, but I think there are certainly better long-term investment opportunities right now.

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Technical analysis: Twitter stocks are still trading in a buy zone

Data source: tradingview.com

Twitter shares have jumped from $ 25 to over $ 80 since April 2020, and the current price is $ 64. If the price rises above $ 70, it would be a signal to start trading Twitter stock and the next target could be $ 75. However, if the price drops below the $ 55 support level, it would be a clear “sell” signal.

Summary

Twitter shares have jumped from $ 25 to over $ 80 since April 2020, and the current price is $ 64. Last week, Truist Securities upgraded Twitter from Hold to Buy with a target price of $ 74, believing the company could grow its sales even faster in the coming years.

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