Twitter: Jefferies still on hold, maintains TP

(CercleFinance.com) - The analyst believes that the group's Q2 results were weak (as expected), with advertising revenue up just 2% p.
a., coupled with a high increase in expenses (+26% per year ex-SBC).

Following the group's earnings call, Jefferies maintains its Hold rating on the stock with a target price of 40 dollars.

"Given the softening ad market, we lower our FY23 rev est to $6B (est. 13% growth), which is well below the $7.5B+ guide from Feb '21," Jefferies said.

"We believe the most likely outcome of the Musk lawsuit is a renegotiation of the purchase below the initial $54.20 bid," the broker adds.



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