TWTR: Negative Sentiment Building after Departures of Executives

Nomura, Stifel, Citi, and Suntrust recently issued reports on Twitter Inc.

after weakness seen in the company's user growth and turnover in management has caused share prices to fall 57 percent in the past year. The overall sediment was negative with analysts reiterating that Twitter needs to focus on its users in order to be competitive in the social media industry. Nomura: Rate Twitter as Neutral and lowered their price target from $30 to $19. Anthony DiClemente, an analyst at Nomura, wrote, "Given the departures of 5 key Twitter executives...We are lowering our 2016/2017 estimates on the heels of these departures as we believe it indicates current turnaround efforts may be taking more time to bear fruit than expected. If so, this implies slower user growth, which pressures revenue, but also the possibility that Twitter's products may require renewed investment, which leads us to modestly downwardly revise our margin assumptions." Stifel: Downgraded Twitter to Hold with a $34 price target. Scott Devitt, an analyst at Stifel, wrote, "It was announced that Twitter's heads of product, engineering, and media would be leaving the company...we don't see how the departure of the heads of three major businesses can be viewed as a positive in the middle of an attempted business turnaround. We downgrade Twitter shares…" SunTrust Robinson Humphrey: Rate Twitter as a Buy and lowered their price target from $34 to $26. Robert Peck, an analyst at Suntrust Robinson Humphrey, wrote, "While we never like to see executive turnover and one could infer that there are product and media concerns in the ST, we continue to think that LT Twitter presents an interesting opportunity for investors…" Citi: Rate Twitter as Neutral with a $29 price target. Mark May, an analyst at Citi, wrote, "They (the departures of executives) reflect abnormally high turnover at Twitter since inception and represent the loss or what mgmt...highlighted as important pieces to the company's turnaround. They may also reflect near term business challenges, including user growth and engagement." Twitter Inc. last traded at $17.02.