Nomura Cuts Twitter Estimates, Says User Growth Could Slow

Nomura's Anthony DiClemente maintained a Neutral rating on Twitter Inc TWTR, while lowering the price target from $30 to $19. DiClemente believes that the departure of five key executives from the company could mean that "current turnaround efforts may be taking more time to bear fruit than expected." If this was true, it would mean that user growth has been slower, pressuring Twitter's revenue. It could also imply the possibility that the company needs to make renewed investments, which in turn means that margins could be lower. The EPS estimate for FY16 has been reduced from $0.59 to $0.48.