SunTrust's Bob Peck Says Focus For Twitter Is On Execution, Remains 'Cautiously Optimistic'

• Shares of Twitter Inc (NYSE: TWTR) were trading lower by around 6 percent ahead of Thursday's market open after the company reported its fourth quarter results.
• Bob Peck of SunTrust Robinson Humphrey lowered his price target from $26 to $20.
• Peck noted that Twitter's strategy and vision should "give investors hope."

Shares of Twitter were trading below the $14 mark for the first time ever at Thursday's market open as the company's fourth-quarter results chased away many of the bulls. However, Bob Peck isn't throwing in the towel just yet as he maintained a Buy rating on Twitter's stock with a price target lowered to $20 from a previous $26.

According to Peck, Twitter's management presented a "cogent vision" for the company, which makes him "cautiously optimistic" and should "give investors hope" moving forward.

Related Link: For Twitter, There's Still A Lot Of Work Ahead

Peck pointed out that Twitter's daily active user (DAU) base was flat in the quarter, indicating that "core users remain intact." In addition, time spent per user has risen while searches are up double-digits year-over-year.

Peck added that while Twitter's management has a game plan moving forward, the company has three scenarios it can tap on to "provide investor support."

• The company can initiate cost cutting plans to better align itself with a reduced growth trajectory.
• Average revenue per user growth alone can support near-term expectations.
• M&A "math" supports higher valuations.

Bottom line, Twitter has several catalysts ahead (Periscope, monetizing logged-out audiences, enhancing targeting, Google integration, etc) to justify a "cautiously optimistic stance." As such, the performance of Twitter's stock and the company should now be judged by the company's execution on its initiatives.