Twitter (TWTR) – Get Report is well positioned to “benefit from a big event landscape in 2021,” according to a Deutsche Bank analyst, who upgraded the microblogging platform to buy from hold.
Shares of the San Francisco company at last check were climbing 4.2% to $47.85.
Analyst Lloyd Walmsley set a share price target of $56, up from $36.
“Twitter is well positioned to benefit from a big event landscape in 2021, expansion into more performance advertising on the back of its ad server rebuild and new [mobile application promotion] product, and an eventual high-margin subscription product,” the analyst said in a note to clients.
Twitter user growth has benefited from the coronavirus pandemic, Walmsley said. But its focus on brand advertising – the weakest segment of the ad market – has resulted in poor revenue performance, holding back the shares from an otherwise good story in 2021.
The market plunged on Monday, extending its three-week losing streak as stocks took a hit from an uptick in new coronavirus cases, declining tech shares and deadlocked stimulus talks in Congress.
The Dow Jones Industrial Average was down 3.2%, around 900 points, on Monday, while the S&P 500 fell 2.5% and the tech-heavy Nasdaq Composite dropped 1.9%.
Market sentiment took a hit after both the U.S. and Europe saw a resurgence in coronavirus cases over the weekend: The U.K. is reportedly considering another lockdown, while countries like France and Spain have seen an alarming rise in new infections.
Fears that a second wave of coronavirus could lead to further government restrictions and lockdowns caused shares of companies that would benefit from a reopening of the economy—including airlines, cruise operators and retailers—to