Brean Capital Maintains Buy on Twitter (TWTR) as CEO Replaced; Reaffirmed Guidance Should Calm Fears
Brean Capital analyst Sarah Hindlian reiterated a Buy rating and $55 price target on Twitter, Inc. (NYSE: TWTR) amid news that CEO Dick Costolo would be stepping down effective July 1, 2015 after 5 years at the helm. Co-Founder and Chairman of the Board Jack Dorsey will serve as the company’s interim CEO while Twitter’s Board searches for a replacement.
Hindlian commented, "We have been anticipating just such an announcement following high levels of public scrutiny around Twitter’s volatile and frequently disappointing financial results, and following last week’s shareholder meeting. We believe that a replacement CEO may be able to better define Twitter as an event-driven platform, attract larger branded advertisers, and respond more rapidly to changes in the marketplace. Furthermore, Twitter reaffirmed its Q2’15 outlook, which we feel should aid in calming market fears that the environment in Q2 has worsened since the last earnings report, causing Mr. Costolo to step-down intra-quarter"
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Shares of Twitter, Inc. closed at $35.84 yesterday.