Twitter (TWTR) M&A 'Slightly More Possible' - Deutsche Bank
Deutsche Bank maintained a Buy rating on Twitter, Inc. (NYSE: TWTR) with a price target of $60. Yesterday CEO Dick Costolo said he was stepping down. In the view of analyst Ross Sandler, "change is a good thing." He also sees M&A as "slightly more possible."
"While most investors were eager to see CEO Dick Costolo step aside, we think he deserves much credit for scaling the business from $3B in value to over $25B over his six-year tenure, a feat few others in consumer internet can match. Further, the CEO dislocation coupled with no super-voting share structure, a board somewhat on the defensive, lots of potential asset value, and the current environment of cheap money - leads us to think M+A from a strategic just became slightly more possible (but we aren’t playing for that outcome). At 7.5x 2016 revenue (vs. 10x for FB) and lots of potential catalysts, we view the risk/reward as favorable," said Sandler.
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 $35.84 yesterday.