TWTR - 'Strong political activists' will stay on Twitter BofA says reiterating Buy

BofA Securities is keeping its Buy rating on Twitter (TWTR), with a price target of $58/share in the wake of the company's decision to ban President Donald Trump.There is a near-term 1Q threat to daily active user count (DAUs) from "churn from the conservative community", although DAUs on Parler are 0.37% of Twitter's U.S. DAUs, and "after some deactivation newsflow near-term, strong political activists will stay on Twitter for other content," BofA analyst Justin Post writes.A Biden administration may be less focused on Section 230 reform, but new laws could provide the companies with better guidelines. They would result in loss of "fringe" users (5%-20% of total) that aren't as much of interest to advertisers, Post says."In our coverage group, we think Twitter has the most incremental exposure to increased content review costs given Facebook and YouTube’s extensive content review & tech. capabilities," he adds. "However, we think other Tweeters

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'Strong political activists' will stay on Twitter, BofA says, reiterating Buy