Twitter, Inc. (NYSE: TWTR) on Tuesday got downgraded by UBS as the Wall Street firms concerned about the advertising growth in the social media platform. UBS analyst Eric Sheridan downgraded the social media company to Hold from Buy and lowered his target price to $16 from $22. Sheridan cited that estimates of advertising revenue are lower for both 2017 and 2018 due to a softer advertising environment and tepid user growth.
Twitter shares closed 1.68 percent lower at $16.96 on Tuesday. It was flat at the early trading on Wednesday. The stock still has 5 percent downside based on Sheridan’s $16 target price. The stock has gain 3.7 percent since the beginning of this year. Twitter scheduled to report fourth-quarter earnings on Feb.9 before market open. Analyst expects the company to post earnings per share of 12 cents on revenue of $740.1 million.