Analysts Very Cautious Against Twitter

Keep in mind that the underwriters still cannot initiate coverage until mid-December as they are in the post-IPO quiet period. These are the analyst calls we have seen since the company’s IPO:

BTIG assigned a Neutral rating this last week.

Cantor Fitzgerald initially started coverage with a Buy rating ahead of the IPO with a $32 price target. The Cantor call was downgraded this last week to an official Hold rating.

Evercore Partners issued an Overweight rating before Twitter opened, and its price target was $43 for the stock.

Morningstar initiated coverage with a Sell rating and it gave a $26 fair value target, which matches the IPO price valuations.

Pivotal Research issued a downgrade alert on the day of the IPO, saying it should fall down to a $30.00 price target.

RBC Capital Markets initially started coverage with an Outperform rating but its price target was down at $33.

R.W. Baird initiated coverage at a Neutral rating.

S&P Equity Research issued a Sell rating, along with a $30 price target. Despite making positive business comments, S&P’s $30 target is still 500-times its expected 2015 earnings per share.

Susquehanna assigned a Neutral rating.

Sterne Agee gave Twitter a Neutral rating and assigned downside price target valuations. The base case should be worth at least $25 to $32 in the next 12 to 24 months.

UBS assigned a Neutral rating and a $45 price target.

Wedbush Morgan initiated coverage with a Neutral rating.

Wunderlich Securities started coverage with a Sell rating and said that the stock was worth $34 based upon its valuation.

One thing remains here, and that is that Wall Street analysts who were not in the underwriting syndicate are generally very cautious. After pricing at $26, Twitter’s post-IPO trading range has been $39.40 to $50.09.