Bob Peck Questions 'What's The Hold Up?' On Twitter's CEO Search

• Shares of Twitter Inc TWTR have decline slightly more than 22 percent over the past three months.
• Bob Peck of SunTrust Robinson Humphrey has maintained a Buy rating and price target of $38 on the company.
• Peck had expected a decision on the CEO to have come to an end several weeks ago. Now, more than 100 days have passed since the resignation of former CEO Dick Costolo was announced.

Bob Peck expressed surprise at there still being no decision on the CEO position saying, “Conversations we had with industry participants indicated that Jack Dorsey was the most logical choice, particularly with no “superior” external candidate surfacing.”

Peck said that he was “stunned” and investors were impatient, especially given that the board had been in discussions with Dick Costolo, regarding his resignation, since December 2014.

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According to the SunTrust report, “Investors are now focusing on the cause of protracted process, with eyes turning towards the board and search committee.”

Although it is crucial for a “diligent and thorough” search to be conducted, “investors are now questioning if the board’s lengthy search has become detrimental,” the report said.

While some investors appear to believe that the board should accept that it might need to look at hiring the CEO of another company, Peck does not expect this to be much of a problem. Dorsey has been accepted as a leader and is “well respected inside and outside of Twitter.”

Dorsey has also been taking care of the company since July and Peck believes that he was behind faster product rollouts. In addition, some of the senior executives in the company would prefer to work for Dorsey rather than an outsider and he has already received the support of shareholders by now as a viable CEO candidate.

However, Peck believes that once a new CEO is chosen, the board will be restructured, with two of the eight members leaving.