2018.04.1721:22:00UTC+00Twitter Shares Jump After Morgan Stanley Upgrade

Shares of Twitter Inc. soared almost 11 percent on Tuesday and were bound for their best session in two months after Wall Street firm Morgan Stanley raised its recommendation on the social network company to “equal-weight” from “underweight”.

In a report, Morgan Stanley analyst Brian Nowak said that investors are likely to continue to pay a premium for the company's stock due to projections of accelerated revenue growth in 2018 and indications of progress in the firm's turnaround.

The analyst raised his target price for Twitter from $28 to $29. At midday trading, Twitter traded at $31.69 on the New York Stock Exchange.

Nowak cited the company's constructive advertiser conversations, improving user growth and positive revisions for the upgrade.

An unexpected swing to revenue growth caused the stock of the company to rise 12 percent following its last quarter report on February 8 and to date, the stock is up 32 percent.

Despite the increasing popularity of the social network, it has struggled to book a profit and consistently grow its revenue.

In general, analysts are cautions. Nine has a 'sell' recommendation on the stock, 21 have neutral ratings and seven recommend buying, according to data from Thomson Reuters. Overall, they anticipate Twitter's stock to fall to $27.58.

The stock is trading at 45 times projected ratings, against Facebook's valuation of 21 times earnings, Thomson Reuters data showed.

On average, Twitter is expected by analysts to report a 10 percent increase in revenue to $605 million and non-GAAP EPS of 12 cents when it reports its March quarter results on April 25.