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Jefferies, Mizuho Positive On Twitter Leadership Changes -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — On Monday, Twitter Inc CEO (NYSE: Jack Dorsey said he would step downParag Agrawal to replace him as CEO. According to analysts at Jefferies (NYSE) and Mizuho Securities, the good news for the company is positive.

Dorsey’s retirement was met immediately with a surge in Twitter’s stock market, though it plummeted soon afterwards and continues to decline on Tuesday. It is down 3.8%.

Truist analyst Brent Thill stated that the move was “a step in the right direction”, which could boost growth and deliver the FY 2023 company goals. Thill cautioned that there are many obstacles to be cleared, but Agrawal’s appointment as CEO and Bret T Taylor being Chairman of Board are both positive developments. Thill maintained his stock rating of “hold” and set a $70 price target for the stock.

James Lee, Mizuho’s chief executive officer, shared the views of his counterparts on leadership changes. He told investors that they need a leader who is more focused on advertising.

Lee explained that Twitter’s new changes allow it to “be more technical-focused on product improvement in order to catchup with peers on user growth”

Lee said that Twitter should also consider hiring seasoned advertising executives, either from Google or FB in order to speed up its DR product improvement.

Lee reiterated the neutral rating of Thill and set a $70 price goal on Twitter shares.

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