By Christiana Sciaudone
Investing.com -- Twitter Inc (NYSE:TWTR) jumped 5.6% after getting a boost from JP Morgan as one of the bank's top picks for 2021.
Analysts Doug Anmuth upgraded the stock to a buy-equivalent from neutral and bumped the price target to $65 from $52, according to StreetInsider.
Shares are trading at their highest since 2014, and are up more than 70% in 2020.
"We are bullish on online advertising in 2021 and expect industry growth to reaccelerate," the analyst said in a note.
Twitter is expected to show the biggest rebound after a sharper ad decline in 2020, and a buyback plan should help support shares, JP Morgan said. The social media company is trading at a discount to rivals Snap Inc (NYSE:SNAP) and Pinterest (NYSE:PINS), which grow faster, but Anmuth said Twitter is "under-owned."
The stock is trading at about 57 times forward price to earnings ratio, compared to Pinterest's 104 times and Snapchat's 417 times, according to Yahoo (NASDAQ:AABA). While Twitter may seem cheap compared to those competitors, it's expensive overall -- the average PE ratio of Nasdaq companies is 21 times, according to Zacks.
JPMorgan (NYSE:JPM) is one of seven buy ratings on the stock. It has 19 holds and one sell, according to data compiled by Investing.com.