Twitter (NYSE:TWTR) stock is rallying after Elon Musk offered to buy the company in a letter to Twitter’s chairman, Bret Taylor. Musk wants to pay $54.20 per share for all of the TWTR stock that he did not previously purchase. He noted that the cash offer was his “best and final” proposal. If Twitter rejects it, he will weigh whether to sell his 9.2% stake in the company.
In the letter, which was published in a U.S. Securities and Exchange Commission filing, Musk stated that Twitter can “be the platform for free speech around the globe.” In order to attain that goal, however, the firm must “be transformed as a private company,” the CEO of Tesla (NASDAQ:TSLA) wrote.
In notes to investors written after Musk had disclosed his initial purchase of Twitter’s shares but before he made his takeover offer, three analysts expressed different views on TWTR stock.
Wall Street Is Mixed on TWTR Stock
Calling the stock’s short-term risk/reward ratio “fairly balanced,” MKM Partners analyst Rohit Kulkarni cut his rating on the shares to “neutral” from “buy.” The analyst believes that the Russian invasion of Ukraine could negatively impact Twitter’s second-quarter results. He did, however, keep a $49 price target on the shares.
Keeping a “hold” rating on TWTR stock was Jefferies analyst Brent Thill. The analyst, who has a 4-star rating from TipRanks, maintained a $48 price target on the shares.
Truist’s Youssef Squali was much more bullish. The analyst wrote that, in the wake of Musk’s investment in Twitter, the company’s “execution” may be enhanced. Squali expects Musk to seek to “make [the platform] more open-source with fewer intermediary controls,” The Fly reported. Squali kept a $50 price target and a “buy” rating on the shares.
Analysts, on average, have a “hold” rating and a $44.79 price target on the shares, according to TipRanks. In early trading, TWTR stock climbed 4% to $47.65.
On the publication date, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.