What happened

Shares of Twitter (TWTR) climbed 6.1% on Wednesday, following an analyst upgrade. 

So what

Pivotal Research analyst Michael Levine boosted his rating on Twitter's stock from hold to buy. He also raised his price forecast from $36 to $59.75, or more than 30% higher than the stock's closing price of $45.33.

A miniature bull is on top of a keyboard button labeled buy.

Analysts are growing more bullish on Twitter's shares. Image source: Getty Images.

Levine sees several catalysts that could drive Twitter's share price higher. He likes the social media company's moves to make it easier for new users to join the platform and start tweeting. He's also bullish on Twitter's direct-response marketing initiatives, as well its rumored subscription service. Additionally, Levine expects the 2021 Olympics to boost engagement on the platform.

In turn, Levine recommends that investors buy the stock ahead of Twitter's upcoming third-quarter earnings report, which he thinks could ignite a rally in its share price.

Now what

Twitter has long struggled to effectively monetize its platform. It's trailed far behind industry leader Facebook in this regard, and its stock has unperformed its larger rival by a wide margin in recent years. But if Levine is correct, Twitter could begin to close the gap with its competitors, and its shares could rally in kind.