Twitter Inc. (TWTR:NYE) Stock is trading just above Analysts Fair Valuation

STA Research
by: STA Research
Twitter Inc.

Based on the Twitter stock forecast from 29 analysts, the average analyst TWTR stock price target is USD 42.81 over the next 12 months. Twitter Inc’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Twitter stock forecast is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, TWTR stock price was USD 42.83TWTR stock price has changed by +1.85% over the past week, +6.02% over the past month and -34.79% over the last year.

Twitter, Inc. operates as a platform for public self-expression and conversation in real-time. The company’s primary product is Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products that enable advertisers to promote brands, products, and services, as well as enable advertisers to target an audience based on various factors, including who an account follows and actions taken on its platform, such as Tweets created and engagement with Tweets.  Twitter, Inc. was founded in 2006 and is based in San Francisco, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow:

Twitter stock price history has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Twitter stock price history has shown that the company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

High volatility:

The total returns for TWTR stock price are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

TWTR stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

TWTR stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

TWTR stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Twitter stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

TWTR stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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