Dorsey Is Just The Beginning For Twitter's Upside: Bob Peck

Courtesy of Benzinga.

• Twitter, Inc. (NYSE: TWTR) have declined 46.83 percent over the past six months, from a high of $52.87, reached on April 7.
• Robert S. Peck of SunTrust Robinson Humphrey has maintained a Buy rating and price target of $38 on the company.
• Peck believes that naming Jack Dorsey at the permanent CEO, apart from confirming the rest of the leadership team, was the right move by the board and that the management is likely to stabilize going forward.

Analyst Robert Peck believes that most investors had expected Mr. Dorsey to be names as the permanent CEO. Twitter’s promotion of Adam Bain to COO was also largely anticipated. Although the company did not mention anything about Evan Williams, Anthony Noto is to continue as the CFO.

“We think the announcements today were the right move by the board and look for the stabilizing of management to be the basis of tangible positive change for the company going forward,” Peck stated.

Peck expects more changes to take place on the board going forward, as Twitter “looks to supplement skill sets.”

Although the company did not provide any quarterly update, Mr. Dorsey did mention new product launches that are expected to engage a wider mass audience, while also serving “more deeply engaged users.”

“We have noticed an increased product launch cadence under Mr. Dorsey in his interim CEO role and would look for this to continue. Importantly, we think this applies to advertising products as well, that can hopefully increase ROIs and ad spending,” Peck added.

Posted-In: Analyst Color Long Ideas News Reiteration Management Top Stories Analyst Ratings Movers Best of Benzinga