Twitter (TWTR) PT Cut to $32 at BMO Capital
BMO Capital analyst Daniel Salmon reiterated a Market Perform rating and lowered his price target on Twitter, Inc. (NYSE: TWTR) to $32.00 (from $34.00).
Salmon commented, "With a new CEO and a number of new product and feature launches recently -- most importantly, Moments and Promoted Moments in the US -- we did not expect a material change in fundamentals. But we also didn’t expect 4Q guidance to disappoint, and we believe this will keep investors focused on whether large advertisers are beginning to moderate their growth of spending on Twitter. We think many monetization opportunities remain (video is just starting for example), and that execution has simply been challenged with all of the changes of late. Looking ahead, we’re focused on: 1) the impact of Moments (both in the US, and as it rolls out globally) and whether it can attract more mainstream users and re-accelerate MAUs; 2) the impact of a wider marketing push on usership as well; 3) the hiring of a new CMO, a process that had been delayed while the CEO decision was being made, and 4) growth of the SMB advertiser base (TWTR has 100K+ total advertisers, while FB tops 2mm), helped by the partnership with Google’s DoubleClick."
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Shares of Twitter, Inc. closed at $31.34 yesterday.