Twitter Analyst Cuts Price Target By 40% After Former Company Exec Files Complaint


A former Twitter Inc TWTR executive has filed a whistleblower complaint with the SEC, which gives Tesla Inc TSLA CEO Elon Musk the opportunity to “allege materially inaccurate representations” by the company, according to Rosenblatt Securities.

The Twitter Analyst: Barton Crockett downgraded the rating for Twitter from Buy to Neutral, while reducing the price target from $52 to $37.

The Twitter Thesis: The SEC filing opens another avenue for Musk to move on “from a fishing expedition on well-hedged spam disclosures,” Crockett said in the downgrade note.

Musk could use the whistleblower's claims “to argue that security malpractice constitutes a material adverse effect,” he added.

Check out other analyst stock ratings.

The claims filed by former Twitter security chief Peiter Zatko could be “portrayed as fitting a pattern” at Twitter, the analyst mentioned.

“Twitter won't want this to drag on, or risk losing everything. Musk might be willing to move ahead if he gets a big concession,” Crockett further mentioned.

TWTR Price Action: Shares of Twitter were up 1.30% to $40.38 at the time of publication Wednesday.

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsBarton CrockettRosenblatt Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!