Wall Street Analyst: Twitter Stock $48 at High End

Latest report sees an undervalued company heading into its IPO

Twitter could be worth $48 a share, more than double what the company is likely to sell its stock for when it hits Wall Street in November, according to a new report.

Sterne Agee's Arvind Bhatia evaluated Twitter’s stock ahead of its initial public offering, and said that under the most valuable scenario the company should be worth between $33 and $48 a share.

The analyst said that under a conservative evaluation, Twitter stock over the next 12 to 24 months would be worth between $25 and $33 a share.

Sterne Agee noted it wasn’t rating or setting a firm target price until the completion of the IPO. The firm also cautioned, in the worst case, Twitter stock could be valued as low as $13.

Twitter is pitching its stock to potential investors this week in its IPO roadshow, as it looks to sell at least 70 million shares to raise about $1.4 billion. Twitter said it was pricing its shares between $17 and $20 for its public debut, but the price could rise if demand is strong.

So far two analysts, including Sterne Agee, have started covering Twitter and issued reports for investors. SunTrust Robinson Humphrey analyst Robert Peck has said Twitter shares could be worth $50. 

At the high end of Twitter’s own valuation —$20 a share— the company would be worth up to $14 billion.

A number of industry watchers have said that valuation is conservative and Twitter’s stock could rise on day one of public trading, which is set for the first week of November.