Wunderlich Secruities’s Blake Harper this morning reiterates a Sell rating on shares of Twitter Pt $34. Really?
Wunderlich Secruities’s Blake Harper this morning reiterates a Sell rating on shares of Twitter (TWTR), and a $34 price target, noting that a 148% climb so far in the stock from its IPO price means “While the company is growing revenues faster than its fastest growing peers and we do recognize the potential for the company to capture larger portions of the mobile and TV advertising market, it appears valuation metrics are irrelevant and that investors are betting aggressively on Twitter being the next great media-technology platform.”
With the float only 11% of shares outstanding, it is “creating a significant leveraging effect on the market value of the company. “There is $5.2 billion of public investor capital supporting the $46 billion market cap,” he writes.