Twitter Inc (NASDAQ:TWTR) shares were upgraded by a Morgan Stanley analyst to Equal Weight due to improved ad business, according to a report by business website TheFLy.com.
Analyst Brian Nowak raised the rating of Twitter’s stock to Equal Weight from Underweight, citing the platform’s improved advertisement business.
"We believe Twitter's video ad product continues to perform well as advertisers continue to look for higher quality online video impressions," wrote Nowak in research note acquired by CNBC.
The analyst also increased his price target for the social media platform’s shares to US$29 from US$28.
The company’s monthly active user growth was also factored into the upgrade. Nowak said that the upcoming Olympic games, the World Cup, and the U.S. midterm elections will be a positive for Twitter.
Shares of Twitter were up more than 2% to $US28.58 in pre-market trading on Tuesday.
Twitter will announce its first-quarter results next week.