Jack Dorsey Out of Running for Twitter (TWTR) Permanant CEO, SunTrust's Peck Says
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The prospects that Jack Dorsey will takeover permanently as the CEO of Twitter, Inc. (NYSE: TWTR) have dimmed following yesterday's update, according to SunTrust Robinson Humphrey analyst Robert Peck. As a results his 'short list' of CEO prospects is lowered by one to 4.
Peck commented, "Yesterday, Twitter announced that the executive search firm Spencer Stuart (possibly Jim Citrin) would run the process and that a new requirement was added: that the new CEO must be full time. Hence, we think our list is culled by 1, as Jack Dorsey has recently reiterated his desire to remain CEO of Square. Correspondingly, we think the odds of the remaining four candidates increase."
The 4 remaining on Peck's 'short list' are: Adam Bain, Ross Levinsohn, Mike McCue and Neal Mohan.
The analyst added that the speed of filling the CEO role is important, but fit is key. "As we stated in our original note, we think speed of this decision is key to stabilizing the management team and fortifying the strategic vision for employees and investors," he said. "We continue to believe that ALL candidates must have a deep understanding of the product, monetization possibilities, and long term platform vision. Importantly, we think a "cultural fit" is paramount. Internally, Adam Bain would fit this set of criteria, while externally we think the other candidates are also very qualified. One additional constraint on external candidates would be the ability to work with Mr Bain if he is not selected, as he is considered instrumental."
Commenting on what's backed in to Q2 expectaions, Peck said expectation of modestly growing to slightly declining "core MAUs" (ex SMS) is anticipated with slightly higher than guided revenues and EBITDA.
The firm maintained a Neutral rating and price target of $40 on TWTR.
For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.
Shares of Twitter, Inc. closed at $35.55 yesterday.
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