Twitter stock could hit $22 if Musk walks away

© Reuters Twitter (TWTR) Shares could hit $22 if Musk walks away – analyst

Wall Street analysts reflect on the latest developments in Elon Musk’s $44 billion acquisition of Twitter (NYSE: ).

This morning, Musk tweeted that the deal will only progress if Twitter can prove that bots make up less than 5% of its users.

“My proposal is based on the accuracy of Twitter’s filings with the SEC. Yesterday, Twitter’s CEO publicly refused to show proof

“You can’t pay the same price for something worse than they claim,” the Tesla (NASDAQ: ) CEO said yesterday.

In response to Musk, Twitter said “it is committed to closing the transaction as quickly as possible on the agreed price and terms.”

For many analysts, the robotics issue is just a scapegoat used by Musk to lower prices.

Jefferies analyst Brent Thill sees Twitter’s stock falling to $22 if Musk leaves.

“Musk’s intent to bid below $54.20 is based more on the recent market sell-off,” rather than the percentage of fake accounts on Twitter, Thill said.

CFRA analyst Angelo Zino cut his price target to $44.00 per share from $54.00 to reflect the low likelihood that Musk will continue to commit to his $54.20 offer.

Analysts believe that “at least 15%-20% lower correction quotes are increasingly reasonable (maintain 420 may be $44.20 or $42.00)”.

Wedbush analyst Daniel Ives also offered his thoughts on the latest development.

“Twitter’s share price will be under pressure again this morning as the odds of a deal closing don’t look good right now, and in our view there could be more than a 60% chance that Musk ends up pulling out of the deal and paying the breakup fee…if The revised deal is indeed done by Musk and Twitter, and once the negotiations take over and due diligence is done around the Twitter DAU and algorithmic hotkey issues, the price could be much lower,” Ives told clients.

Twitter stock fell 0.5% today.

Senard Karametovich

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