NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report were retreating in pre-market trading on Monday after Oppenheimer lowered its rating to "underperform" from "perform" on the stock following its 21% surge on Friday on takeover speculation.

The firm set a $17 price target on shares of the social media company, given slowing user growth, poor production implementation, declining user engagement, inferior advertising technology, platform safety issues and competition.

"We believe a media company is the most likely purchaser and would not pay meaningfully more than the valuation implied by our price target," Oppenheimer stated.

Twitter is overvalued and already discounting a takeover premium, Oppenheimer said, noting that any purchaser would need to make significant investments to improve the user experience and advertising technology.

The firm sees "no meaningful increase" from engagement from the Olympics or NFL games, which makes a deal even more unlikely.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Twitter's weaknesses include a generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TWTR

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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