Shares of Twitter (TWTR) are moving higher after news reports emerged saying that Salesforce (CRM) remains in talks to possibly buy the company. Additionally, Evercore ISI analyst Ken Sena upgraded the stock to Hold this morning, citing valuation and third quarter guidance that may prove conservative.

SALESFORCE, TWITTER STILL IN TALKS: CNBC's David Faber said today that Twitter and Salesforce remain in talks about a potential takeover deal. His report agrees with a previous one issued yesterday by Reuters, saying that Salesforce is still considering whether it should make a bid for the microblog service operator and is deliberating whether it is worth making a "lowball offer" in the coming days. Furthermore, there may be other companies contemplating offers for Twitter, the publication noted, citing sources. This comes just days after Bloomberg said the company's sale process was "almost dead" as the major suitors for the company were said to have lost interest amid investor pressure. Multiple reports indicate that Alphabet's (GOOG, GOOGL) Google unit and Disney (DIS) had weighed, but passed on, bidding for Twitter.

ANALYST UPS RATING: Evercore ISI's Sena upgraded Twitter to Hold from Sell, citing the recent fallout in share price from a "stalled sale process," which now places shares more in line with his $17 price target. Furthermore, the analyst said he suspects that the company's third quarter guidance may prove sufficiently conservative given the first Presidential debate, the Olympics, and NFL Thursday Night games, even though he concedes that the recent M&A speculation may further hinder performance.

GUIDANCE COULD EXCEED EXPECTATIONS: Deutsche Bank analyst Ross Sandler remains bullish on the microblog service operator and told investors that for the first time in a year, Twitter's guidance could meet or exceed consensus expectations. The analyst noted that his channel checks point to a "high-end of the range" revenue with "slightly up" monthly active users for the third quarter. Twitter's NFL live video project "has been by all accounts a smashing success," Sandler added, with Amplify ad commitments well above initial expectation and audience in the first couple of games also above what Twitter envisioned. Moreover, as the shares approach pre-M&A speculation levels around $15, he believes the risk/reward is favorable, especially as fundamentals stabilize. Sandler reiterates a Buy rating and a $22 price target on the shares.

PRICE ACTION: In morning trading, shares of Twitter have gained about 1% to $17.74, while Salesforce shares have slipped 3% to $72.65.