Shares of Twitter Inc. bounced 1.2% in premarket trade Thursday, after the price target was raised at MKM Partners, which cited the social media company’s turnaround potential. Analyst Rob Sanderson lifted his fair value estimate for the stock to $21.50, which was just 3.4% above Wednesday’s closing price, from $18.00, while keeping his rating at neutral. Sanderson said the valuation he assigned the stock is “generous,” given the “importance and uniqueness” of the Twitter network and assuming management will continue to execute a difficult turnaround. “We continue to find [Twitter] a challenging stock as the company shows signs of a turnaround, but valuation is already reflective of a return to mid-teens growth or higher,” Sanderson wrote in a note to clients. The stock had slumped 4.8% on Wednesday, and had shed 7.3% since it closed at a 13 1/2-month high on Friday. The stock has rallied 27.6% year to date through Wednesday, while the SPDR Technology Select Sector ETF has run up 30.9% and the S&P 500 has gained 17.3%.
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