Analyst: Twitter Has More Downside Than Upside

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It’s another rough day for Twitter (NYSE:TWTR) stock. Shares were off about 3 percent in early trading on Wednesday following news that the stock was once again hit with the downgrade stick, this time from analysts at Cantor Fitzgerald. The analysts, like many others, cited the stock’s enormous valuation.

“While historically we’ve reserved our ‘SELL’ rating to business models with structural challenges, we find TWTR’s valuation to be excessive and currently see materially more downside than upside,” analyst Youssef Squali wrote in a note seen by StreetInsider. The firm holds a $32 price target on the stock, representing a downside of nearly 48 percent from Tuesday’s closing price of $64.46 per share.

The note from Cantor Fitzgerald is just the latest in a string of similar actions and comments from analysts at several major financial institutions. Shares slid about 4 percent on Monday and 7.3 percent on Tuesday after analysts at Morgan Stanley and CRT Capital stepped off the bandwagon. All told, analysts hold a median price target of $45.50, a downside of nearly 26 percent. The high end of the estimate range sits at $70, though, with the low at $20, representing enormous disparity in how analysts feel about the stock.

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