Thill, who joined Jefferies in May having previously worked for UBS, believes that Twitter's users are engaging more with its platform but that the social media company is having difficulty translating that into revenue, and finding growth.
Thill concluded that video is "the largest opportunity across social for 2018 to 2020" and Twitter's product is not really different.
In pre-market trading, Twitter shares were down 1.4% at US$16.66. Jefferies price target for Twitter is US$16, down from US$20.
Among other changes in the bumper sector review, Thill and his team also downgraded Tripadvisor Inc (NASDAQ:TRIP), Endurance International Holdings Group Inc (NASDAQ:EIGI), and Shutterstock Inc (NYSE:SSTK) all to ‘underperform’, but upgraded Expedia Inc (NASDAQ:EXPE) to ‘buy’.