Twitter Gets a Price Target Slash from Citi

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According to Citi, near-term revenue outlook for Twitter is enough for the firm to cut Twitter estimates and slash their price target.

Citi is has lowered its earnings estimates on Twitter due to concerns about the social media company’s “near-term revenue outlook.”

On Wednesday, the firm wrote in a note that it has reiterated a “neutral” rating on Twitter shares and have cut the stock’s price target from $45 to $36.

According to Citi, ongoing issues with Twitter’s Mobile App Promotion product could hit revenues. Based on these concerns, Citi lowered its fourth-quarter EPS estimate to 24 cents from 27 cents.

Twitter is expected to report fourth quarter financial results on February 6th.

Citi also said the stock was a “high risk” because shares have proven to be “especially volatile relative to other Internet stocks.”

Analysts have also had concerns over the company’s CEO Jack Dorsey planning to spend six months in Africa next year for his other company Square Inc.

Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) and have not been compensated for this article.