Rosenblatt Maintains Neutral on Twitter (TWTR) Pending CEO Succession Details
Rosenblatt maintains a Neutral rating and $36.00 price target on Twitter, Inc. (NYSE: TWTR) pending CEO succession details. Analyst Martin Pyykkonen uncertainty around senior leadership at the company will likely negatively impact execution.
Pyykkonen commented, "We still think there is a substantial growth opportunity in front of Twitter, but the execution frustration continues and the near/intermediate term uncertainty around senior leadership at the company will likely negatively impact execution over the next few months. We are maintaining our Neutral rating on the stock ($36 price target), pending CEO succession details and better monetization from Twitter’s underlying assets. Twitter as a public company has so far been a case of unrealized potential and missed opportunities in driving social network usage and monetization to its full potential."
Pyykkonen also added, "Our 2Q15 and 2015 full year revenue estimates are currently ~2%-4% below the street consensus. Although the company reaffirmed 2Q15 guidance last week at the time of Dick Costolo’s resignation as CEO there was also still a clear statement by the company that MAU growth was still weaker so far in the quarter than it had been in 1Q15. We estimate MAU growth will be modest at best, and maybe nearly flat year/year in 2Q15."
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Shares of Twitter, Inc. closed at $34.82 yesterday.