By Christiana Sciaudone
Investing.com -- Twitter is showing signs of life.
Shares are up 7% after Pivotal Research bumped the stock to buy from hold, and the price target to $59.75 from $36, saying there's potential for the company. That's a Street-high price target for Twitter, which is currently trading around $46.09.
"Investors will admittedly need to underwrite a high multiple with a company that has had some historical executional hiccups. We believe it will be warranted if the ship is moving in the right direction as we suspect," analyst Michael Levine wrote, according to StreetInsider. "In particular, we like: 1) Olympics on the come in 21, 2) the hopes for direct response to beginning to kick in (we think happening), and 3) a potential subscription business (albeit very nascent)."
The analyst cited third quarter earnings per share and forward commentary that could be positive catalysts for the stock. Twitter reports third quarter earnings next month.
Twitter has six buy ratings, 22 holds and one sell, with an average price target of $39.68.