By Sam Boughedda
Investing.com — On Monday, Twitter Inc (NYSE:TWTR) CEO Jack Dorsey said he would step down to be replaced as CEO by Parag Agrawal. Analysts at Jefferies (NYSE:JEF) and Mizuho Securities said the news is positive for the company.
Dorsey's stepping down was met with an immediate jump in Twitter's stock price, although it fell soon after and has continued to retreat on Tuesday, currently down 3.8%.
However, Truist analyst Brent Thill said the change was a "step in the right direction" that could reinvigorate growth and help deliver on the company's FY 2023 goals. Thill did warn that there are still many hurdles to clear, but the appointment of Agrawal as CEO and Bret Taylor as Chairman of the Board are positive changes. Thill kept his hold rating and $70 price target on the stock.
Mizuho's James Lee shared his counterpart's view on the leadership changes, telling investors that the company needs a leader more focused on the advertising business.
Lee said the change allows Twitter "to be more technically-focused on product improvements in order to catch up with peers on user growth and performance advertising."
"We feel that Twitter could also look to improve its management bench by hiring seasoned advertising executives from either Google or FB to accelerate its DR product improvements," added Lee.
Like Thill, Lee reiterated a neutral rating and $70 price target on Twitter shares.