J.P. Morgan Calls TWTR a Promising Pick in 2021

The security is trading at six-year highs today

Deputy Editor
Dec 16, 2020 at 9:24 AM
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The shares of Twitter Inc (NYSE:TWTR) are up 3.1% at $52.82 this morning, following an upgrade to "overweight" from "neutral" by J.P. Morgan Securities. The analyst said Twitter is well positioned to deliver sustainable growth in the new year, citing online advertising and industry re-growth in 2021.

The security is pacing for fresh six-year highs in response, and is on track for its fifth-straight win. While TWTR did suffer a sizable bear gap back in October, the shares quickly recovered, with help from the 80- and 100-day trendlines, and now sport an over 64% year-to-date lead. 

There's still plenty of room for the brokerage bunch to follow J.P. Morgan's lead. Just six covering TWTR called it a "strong buy," compared to 18 "hold" ratings, coming into today. Plus, the 12-month consensus price target of $44.14 is a 16.4% discount to current levels. 

While calls are still outnumbering puts on an overall basis, the options pits have been a bit more bearishly skewed than normal. This is per TWTR's 50-day put/call volume ratio of 0.35 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 76% of readings from the past year. 

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