Nomura: Twitter's 2016 Is All About Execution

According to Nomura analyst Anthony DiClemente, Twitter Inc TWTR's timeline deserves further attention and a "reset."

While Twitter announced an algorithmic timeline amid the brushed-off #RIPTwitter phenomenon, DiClemente remained critical toward Twitter's recent performance.

The Note

"Twitter results for the quarter were mixed, in our view: most notably, user growth declined in 4Q, as monthly active users (MAUs) were down sequentially, excluding SMS followers," DiClemente began, highlighting the negatives.

However, the analyst continued, "More optimistically, MAU growth has rebounded in early Q1, back to the absolute level of 3Q15."

Related Link: This Twitter Bull Thinks #RIPTwitter Is Nonsense

Looking Ahead

DiClemente elaborated on the updated timeline for Twitter, "We believe that 2016 will be a year that depends on execution to push forward the refreshed product vision with improvement necessary for a return to sustained user growth."

Therefore, he updated the 2016 fiscal year EBITDA estimate from $764 million down to $759 million and the 2017 fiscal year EPS from $1,043 million down to $948 million.

An Aside

In the note, DiClemente was quick to mention the firm's hesitation toward Twitter, "Guidance on monetization calls for continued deceleration, an aspect that gives us pause; we wait execution on the initiatives aimed at reaccelerating both user and advertising growth."

Nomura currently has a Neutral rating on the company with an attached price target of $19.