Twitter (TWTR) CEO Appointment has Many Positives, Few Negatives - Cowen
Cowen affirms Twitter, Inc. (NYSE: TWTR) at Market Perform with a price target of $30 after the company named Jack Dorsey as CEO.
Analyst John Blackledge sees the news as a modest positive for the stock. The analyst commented, We see merit to the Dorsey selection given his long association with Twitter, reputation as a technologist and clear passion for the company. His selection also brings continuity to the executive ranks and appears to be well-received inside the company. The promotion of Adam Bain should allow Dorsey to load balance with another highly capable executive. There are a series of advertising and user products upcoming including i) Project Lightning; ii) the GOOG / DoubleClick partnership; and iii) new commerce functions, that could be positives for the stock. Offsetting these positives, persistent challenges with user growth remain, Dorsey is also running another technology company (Square) and Twitter remains in a search for the Chairman.
Blackledge also said, the move eliminates uncertainty and allows the team to focus on product improvements and execution.
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