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Twitter Inc. (TWTR) Appoints Jack Dorsey as Permanent CEO; More Analysts Respond

By Austin Angelo

Twitter Inc. (NYSE:TWTR) recently announced the appointment of Jack Dorsey, one of the co-founders of the company, as its new permanent CEO. In response to the announcement, top analysts following the company weighed in. All ratings were given on October 5.

Youssef Squali of Cantor maintained a Buy rating for the stock with a price target of $50. Squali said, “Today, Twitter finally announced the appointment of Jack Dorsey as permanent CEO, and while this announcement was largely expected (although timing has been uncertain), the tone and optimism on the investors call were palpable, and somewhat greater than we anticipated.. With this uncertainty out of the way, and positive commentary around the pace of product rollout/innovation, this is an incremental positive for the stock short-term, in our view. Longer-term success continues to be predicated on management’s ability to grow users and engagement.”

Youssef Squali has a 59% overall success rate recommending stocks with a +15.7% average return per rating when measured over one-year and no benchmark.

Separately, Victor Anthony from Axiom maintained a Buy rating on Twitter and set a price target of $37. Anthony commented, “The decision to appoint Dorsey as permanent CEO was unanimous. Employee morale at Twitter was said to be very strong. We are positive on this announcement as we believe that it will instill stability at Twitter.” He added, “While there were no updates provided on 3Q trends, we think the appointment of Dorsey as CEO could be interpreted as a positive read on the quarter’s results.”

Victor Anthony has an overall success rate of 59% recommending stocks with an average return of +13.3% when measured over a one-year horizon and no benchmark.

Analyst Robert Peck from SunTrust maintained a Buy rating on Twitter. He said, “While we are very pleased with today’s announcements, we think that ultimately the company and Mr. Dorsey will be judged on their execution. Mr. Dorsey alluded to new products coming that should not only engage a wider mass audience, but also serve their more deeply engaged users… We have noticed an increased product launch cadence under Mr. Dorsey in his interim CEO role and would look for this to continue. Importantly, we think this applies to advertising products as well, that can hopefully increase ROIs and ad spending.”

Since 2009, Robert Peck has earned a success rate of 58% with an average return of +8.4% when measured over a one-year horizon and no benchmark.

Lastly, John Blackledge maintained a Market Perform rating for Twitter with a price target of $30. As per the analyst, “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.” Talking about the challenges facing the company Blackledge said, “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.”

The analyst has a 46% overall success rate recommending stocks with a +2.1% average return when measured over a one-year horizon and no benchmark.

According to the 28 analysts polled by TipRanks in the last 3 months, 14 recommend buying the stock, 13 recommend holding it, while one recommends selling it. The average 12-month price target between these analysts is $38.67, marking a 30% potential upside from current levels.