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Is sentiment changing in Twitter?

Talking Numbers

It’s a bird, it’s a plane…it’s Twitter!

Shares of the social media giant soared nearly 11 percent Wednesday after Nomura upgraded the company to “buy” from “neutral,” and upped its price target to $43 dollars per share.

In a note, Anthony DiClemente of Nomura listed his five reasons for the upgrade:

  1. “The market has priced in the notion that Twitter is a niche product only”
  2. “Velocity of monetization per user growth is fastest in sector by far”
  3. “International use is just scratching the surface”
  4. “Incremental margins will be higher than Street is modeling”
  5. “Raising revenue estimates above the Street”

Shares of Twitter are still down more than 46 percent this year, but could Wednesday’s upgrade be a sign that the sentiment is changing? And is now a safe time to buy?

(Read: Twitter CEO: Not focused on short-term stock fluctuations)

“While I’m not in for the long run, I think there is a trading opportunity here,” said JC O’Hara of FBN Securities, who has a price target of $38 dollars per share.

Meanwhile, Erin Gibbs of S&P Capital IQ said the recent price action in Twitter is normal for a newly IPO’ed company. “There’s a lot of volatility in those first 18 months, and most IPOs underperform.”

(Watch: Herb Greenberg's question for Twitter)

However, she is concerned about one thing: “I think the big concern out there is user growth. That’s why we don’t own it, and we don’t look to add it right now.”