Twitter shares could drop to $11/share without deal, analyst says (update)
Scott Olson

Update 11:30am: Adds Rosenblatt analyst's specific comments. 
Twitter (NYSE:TWTR) shares could see downside to $11/share if Elon Musk's $44 billion deal to acquire the company doesn't happen, according a Rosenblatt analyst.
Twitter (TWTR), whose shares slumped 6.9% in trading on Monday after Musk late Friday terminated his $54.20/share agreement to buy the social media gain, has the potential to drop another 68% to $11/share, Rosenblatt Securities' Barton Crockett said in an interview on CNBC. Crockett earlier cut his price target on TWTR to $33/share.
"We are arguing that it would be suffering at the low end of peers so it could be an $11 stock," Crockett said. "That would be based on a 90% plus decline from the 52-week high, which would be at the high end of what peers have done and also reflecting the fact that the business I think has been meaningfully disrupted."
The comments come as Twitter is set to battle with Musk over the deal termination as Bloomberg reported Sunday that the social media company has hired law firm Wachtell, Lipton, Rosen & Katz LLP as it prepares to sue billionaire Tesla (TSLA) CEO Musk early this week.
Wedbush Securities analyst Dan Ives, who rates Twitter (TWTR) shares neutral and recently lowered his price target to $30, early wrote that Musk news is likely to result "in an Everest-like uphill climb" for the company and its management as it deals with employees turnover, morale, advertising headwinds, investor credibility and a number of other issues.
JMP Securities analyst Andrew Boone wrote in a note to clients earlier that Twitter (TWTR) shares are likely worth between $25 and $30 on an independent basis.
While Twitter (TWTR) dropped, new rival social media outlet SPAC Digital World Acquisition (NASDAQ:DWAC), which is taking Donald Trump's social media app Truth Social public, jumped 12%.
Twitter (TWTR) has short interest of 5.3%.
Also see from Friday, Twitter facing a 'disaster scenario' as Elon Musk said he's terminating $44B acquisition.