Citi analyst Mark May upgraded Twitter to Neutral and raised his price target for the shares to $20 from $15.

The stock closed Friday up 19c to $19.90. The analyst highlights Twitter's recent stability in user metrics, advertising product improvements and recent success in signing video partner deals.

He views the current valuation as fair, noting the shares have underperformed peers year-to-date despite rallying 41% from the post-Q2 earnings report lows.