Twitter is worth more than $11 billion

Twitter isn't yet making a profit, but analysts think its future is bright -- and that it's worth more than the current $11 billion valuation.

Twitter set the preliminary price range for its initial public offering at $17 to $20 per share late Thursday. At the top of that range, the company would be worth $11 billion.

That's lower than the $15 billion to $20 billion valuation that some experts had predicted.

Even the $11 billion figure might sound high given that Twitter is unprofitable. But investing in a company is about belief in its future potential, not its current situation.

In a note to clients on Friday, SunTrust analyst Robert Peck said Twitter "wisely started the pricing conservatively" -- and he expects the company to raise its range, which isn't binding, over the next few weeks.

"[Twitter] left room to raise the range based on potential investor demand, which we anticipate will be strong," Peck said. He based that demand prediction on discussions with several investors over the past few weeks, which leads him to believe the deal will be "well received."

In fact, Peck set a $50 price target on Twitter. 

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