Who's Most Likely Bidding On Twitter Now And At What Price?

Shares of Twitter Inc (NYSE: TWTR) are trading lower by 20 percent after a Recode report said the company won't be receiving a buyout offer from a handful of companies that were reportedly interested in buying them out.

Investors are now asking if any potential bidders are left - a question which Bob Peck of SunTrust Robinson Humphrey answered.

Related Link: Twitter Shares Nosedive Following Reports That Google, Apple And Disney Aren't Interested

In a report on Thursday, Peck sees the following companies as the potential leading bidders for Twitter: 1) International Business Machines Corp. (NYSE: IBM), 2) Verizon Communications Inc. (NYSE: VZ), 3) AT&T Inc. (NYSE: T), 4) Microsoft Corporation (NASDAQ: MSFT), 5) Oracle Corporation (NYSE: ORCL), 6) Comcast Corporation (NASDAQ: CMCSA), 7) an international company.

Peck continues to believe that given Twitter's challenging trends, M&A is "inevitable" for the company. However, the analyst suggested that Twitter CEO Jack Dorsey would prefer to see if some of his recent initiatives can work in turning the company around before seeking strategic alternatives.

Peck noted that applying the 17x EBITDA multiple at which LinkedIn was bought out then a take-out price could reach $20. Under a competitive process a buyout offer could come in closer to $24 a share.

"However, we underscore that it's possible that no bids materialize (i.e. a "busted process") or that bids are LOWER than the current stock price ( a "take under") – this could bring the stock back to its 52 week lows (~$14-15), right before when the LinkedIn acquisition that sparked general M&A anticipation," Peck emphasized. "Hence the risk reward is still not favorable for Twitter, in our view."

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