After UBS investment bank changed the rating of Twitter Inc (NYSE:TWTR) from “neutral” to “buy”, there has been a growing interest in the stock. The social media company has also registered successive three months advancement in the market, a factor that continues to attract more investors.
On Tuesday, Twitter Inc (NYSE:TWTR) closed at $50.83, which is 2.94% gain. This was after MKM Partners, a research and trading company, reaffirmed Twitter’s “buy” rating on social media. MKM Partners even went ahead to give the stock a target price of $64.
The social media company also upped its bond from $1.3 billion to $1.8 based on the high demand for the stock. The said bond provides two plans of 5 years and 7 years. The 5 year convertible notes are due in 2019 and have an annual interest of 0.25% while the 7 year notes earns 1% interest and are due in 2021.
The step marks Twitters boldest fundraising stunt since its 2013 initial public offer. It’s not yet clear what the company intends to do with the raised funds, but it’s believed that the funds will be used to expand the San Francisco-based company’s activities and to help in new acquisitions. Information from the company simply says that the proceeds will be used for “general corporate purposes.”
Twitter Inc (NYSE:TWTR) recently mentioned that they are working on strategies that will see the social media company go pervasive. The company is said to be working on new ways of expanding its market coverage and to provide users with better services.
And MKM Partners concurs that indeed Twitter Inc (NYSE:TWTR) can go pervasive. This was after carrying out a survey of 1,800 respondents across different demographics and studying the possible scenarios for the company.
MKM Partners representative, Rob Sanderson, revealed that their findings show that Twitter Inc micro-blogging system has “solid dispersion across key demographic criteria” and has a huge potential for growth.
This article has been written by Victor Ochieng.