Twitter, Inc. (TWTR) PT Lowered to $14.50 at BofA/Merrill Lynch

BofA/Merrill Lynch lowered its price target on Twitter, Inc. (NYSE: TWTR) to $14.50 (from $16.00) while maintaining a Underperform rating.

Analyst Justin Post comments "While we are encouraged with the continued progress on user engagement for active users, the limited MAU growth, monetization challenges, and rising competition will continue to present challenges in 2017. Management looks to recapture ad budgets based on the recent platform and engagement improvements, but it could take 3-4 quarters before there is a potential revenue impact. Executive churn also raises execution risk and strategic uncertainty, in our view. We are lowering our PO to $14.50 based on 12x 2018 EV/EBITDA (discount to peers at 13x based on lower growth), and reiterate our Underperform."

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