Deal for 'deteriorating' Twitter unlikely: Analyst

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Mizuho Securities downgraded Twitter to underperform on Wednesday, citing stretched valuations and saying it's not clear the social media company will be acquired.

"We are skeptical of these potential business combinations and believe that the stock is overvalued as business fundamentals have deteriorated significantly over the past 12 months," equity analyst Neil Doshi wrote in a research note.

In the past three months, shares of Twitter have rallied nearly 45 percent driven by M&A reports, which pointed to Salesforce, Microsoft, Alphabet, Disney, among others, as potential acquirers.

"In our view, we would put Salesforce and Alphabet in the 'maybe' camp, but have some reservations about these deals happening, and we believe that investors would view these transactions as negative for both companies," said Doshi.