Truist Securities analyst Youssef Squali downgraded Twitter (NYSE:TWTR) to Hold from Buy with a $50.00 per share price target.
Squali notes that Twitter stock price is close to his price target as the company awaits a reported hostile tender offer from Elon Musk.
Tesla (NASDAQ:TSLA) CEO’s $54.20 per share offer is seen as “fair” while Squali says that “a competing bid is unlikely given 1) how restricted the “strategics” like GOOGL/MSFT are in M&A, 2) size of investment (at $43B+), and 3) valuation.”
The analyst added that Twitter stock price could “revert to the low-to-mid $30s” if Musk’s offer fails to materialize. A move to $30 would see shares tumble roughly 35% from current levels.
Moreover, the analyst expects Twitter to report in-line Q1 results.
“We note however that both F/X and the Russia/Ukraine war are short-term headwinds.. 1Q22 is a tough comp period with the company lapping 1Q21’s 28% growth. Given Twitter’s heavier skew towards brand advertising, we see the company as somewhat insulated from Apple’s iOS14.5 changes on measurement and targeting,” Squali wrote in a client note.
Twitter stock is down nearly 1% today.
By Senad Karaahmetovic