SunTrust Robinson Humphrey has Twitter stock listed as a “Buy” with a price target of $45. The stock is trading at $37.85 at press time.
MoPub, the mobile ad exchange Twitter acquired last year, is the reason SunTrust analyst Robert Peck is bullish on Twitter.
“We think Twitter’s MoPub exchange is one of its greatest assets,” SunTrust wrote in a note explaining the “Buy” rating. “We believe that MoPub can be one of the few global mobile native ad exchanges that leverages identity based information, becoming very unique and valuable.” SunTrust reckons only Google, Facebook and Apple can rival its scale.
Per Business Insider, SunTrust also estimates MoPub could account for over $500 million of Twitter’s revenue by 2017, which would be about 14% of total revenue. That’s up from an estimated $56 million in 2014.