Market-Defying Twitter Stock Ripe For Upgrades

TWTR stock touched a three-year high of $35 last Thursday

by Patrick Martin

Published on Feb 12, 2018 at 10:17 AM

Even as the major stock market indexes suffered their worst week since 2016, Twitter Inc (NYSE:TWTR) stock tacked on an impressive 21.6% last week -- its best single-week performance since February 2015 -- thanks to well-received earnings. This morning, analysts have taken notice, with BMO raising its price target on TWTR stock to $28 from $22. Nevertheless, the new target still represents a discount to the equity's current perch.

Despite the stock's outperformance of late, 24 of the 29 analysts covering TWTR rate it a "hold" or worse. Furthermore, the equity's average 12-month price target of $27.16 sits below the stock's current perch of $31.71. A round of upgrades and/or additional price-target hikes could provide a boost to the social media stock in the near future.

Twitter stock is up 32% so far in 2018, riding last week's earnings-induced bull-gap to a two-year high of $35 on Feb. 8. The stock has now more than doubled since its April low of $14.12, and has outperformed the broader S&P 500 Index (SPX) by nearly 55 percentage points during the past three months. 

Looking at sentiment data, TWTR's Schaeffer's put/call open interest ratio (SOIR) of 0.87 ranks in the 98th percentile of its annual range. In other words, near-term options traders are unusually put-heavy on the social media stock. Continued technical outperformance could lead to an unwinding of those bearish bets. 

a schaeffer's exclusive


5 tips to leverage profits in this FREE insider report!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.
Another Week of Fresh Highs Amid U.S.-China Trade Developments, Earnings
Developments on a trade deal between the U.S. and China were closely followed this week
Call Traders Blast These 2 Surging Stocks
Both stocks are enjoying record weeks
The IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.