The social media company is the focus of takeover discussions this week with potential buyers speculated to be Salesforce.com (CRM), Alphabet's (GOOGL) Google unit, Disney (DIS) and Microsoft (MSFT).
If no bids materialize, Citi said the stock could reset to its lows from late May at a 40% downside from current levels, the Fly mentions.
The firm added that while acquiring San Francisco-based Twitter offers "strategic rationale" for some companies, Twitter's "struggles and steep valuations" make a high-premium deal less likely, the Fly notes.
A $26 per share bid seems "aggressive," the firm added.
SunTrust said late yesterday that applying a 40% takeout premium to the stock's average over the past few months, the deal price would range from $27 to $24 per share, Barron's reports.
"That level... [is] close to the original $26 initial public offering price and only up 3% to 15% from today's price," the firm noted.
"However, should the company clarify that it is not for sale, the shares could trade back down to the approximately $18 level, from before the press announcements, or down 22%," SunTrust added, Barron's said.
The firm has "neutral" rating on Twitter shares.
Separately, 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 articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: TWTR