Wall Street Applauds Twitter's Executive Decisions

• Shares of Twitter Inc TWTR were higher by more than 7 percent on Monday.
• Twitter named Jack Dorsey as permanent CEO, while Adam Bain was promoted to COO.
• Analysts were mostly positive following the announcement.

Shares of Twitter closed higher by more than 7 percent on Monday after the company officially named Jack Dorsey as permanent CEO while Adam Bain was named COO while Anthony Noto will remain the firm's CFO.

Bob Peck: Announcements Were The ‘Right Move'

Bob Peck of SunTrust Robinson Humphrey commented in a note that Twitter's executive announcements were "the right" moves by the board of directors. However, Dorsey (as well as the entire company) will ultimately be judged on his execution.

Peck also noted that Dorsey oversaw an "increased product launch cadence" while he held the interim CEO title and this should continue following the promotion to permanent CEO. Accordingly, the announcement represents "one of the many" catalysts for both consumers and advertisers.

Shares remain Buy rated with an unchanged $38 price target.

Related Link: Pros React To Twitter-Jack 2.0

Brean Capital: ‘Jack Is Back'

Sarah Hindlian of Brean Capital commented in a note that Twitter's announcement of a permanent CEO will "reassure" investors and "help to calm the uncertainty" surrounding the company, it is important to note that Dorsey will be splitting his time between leading Twitter and Square.

Hindlian did note that it is "important" for Twitter to be led by its co-founder who is also a "product visionary." These two factors alone could provide reassurance to both the product development teams and investors.

Hindlian also pointed out that Bain's role has been a positive one as the company has grown from "almost negligible" revenues when he joined to a nearly $2 billion run rate as of the second quarter.

Shares remain Buy rated with an unchanged $47 price target.

Axiom: Catalysts To Drive The Stock Higher Are ‘Near'

Victor Anthony of Axiom commented in a note that Dorsey likely has the backing of the board, several shareholders, and employees despite the fact he will be splitting his time with Square.

Anthony stated he is "fine" with Dorsey keeping a dual role, but at some point in the future he will need to step away from Square to focus exclusively on Twitter. Specifically, the analyst pointed out that Project Lightning and its associated marketing plan are "both on the horizon" and will instill "stability" while driving user growth and engagement in 2016.

Shares were upgraded to Buy from Hold with a price target lowered to $37 from a previous $40.