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Monday, Piper Sandler reiterated an Overweight rating on Twilio stock (NYSE:TWLO) with a price target of $161.00, above the current trading price of $114.31. The firm’s analysts held meetings with Twilio’s leadership, including CEO Shipchandler and CFO Viggiano, discussing the company’s growth prospects and strategic initiatives. According to InvestingPro data, Twilio maintains a strong financial position with more cash than debt and a healthy current ratio of 4.2x.
During the discussions, which took place in Boston and New York City, Twilio’s executives emphasized the company’s unique position as the only Customer Experience as a Service (CXaaS) platform that integrates communications and data. They also expressed confidence in achieving growth rates higher than those presented during their analyst day, particularly through cross-selling. This optimism aligns with InvestingPro data showing revenue growth of 7.32% in the last twelve months and analysts expecting the company to turn profitable this year.
The talks also covered Twilio’s outlook for 2025 to 2027, the potential of Rich Communication Services (RCS), and the integration of Segment, a customer data platform acquired by Twilio. The company’s leadership team conveyed a strong belief in the diversity and vectors of Twilio’s growth, supported by its robust gross profit margin of 51.13% and strong cash flow generation.
Piper Sandler highlighted Twilio’s successful ’self-help’ story over the past year, suggesting that investors might be drawn back into the stock based on its execution and AI narrative. The analysts view the recent pullback in Twilio’s stock price as an attractive entry point for investors, labeling Twilio as their top pick in the Communications sector.
The Overweight rating and $161 price target suggest Piper Sandler’s positive outlook on Twilio’s performance and market position. The endorsement follows a period of strategic developments and a focus on leveraging artificial intelligence to drive growth.
In other recent news, Twilio’s fourth-quarter earnings and revenue results have garnered attention from several analyst firms. The company reported an 11% year-over-year revenue increase, marking its first double-digit growth in two years, according to Bernstein. Despite this, Twilio anticipates a slight decline in growth for the first quarter of 2025. Morgan Stanley (NYSE:MS) upgraded Twilio’s stock rating to Overweight and raised the price target to $160, citing optimism about the company’s growth prospects and profitability. Similarly, Piper Sandler raised its price target to $161, maintaining an Overweight rating, and highlighted stable Gross Profit Margin and Net Revenue Retention rates.
Stifel increased its price target to $135 but kept a Hold rating, noting that Twilio’s earnings were slightly below market expectations. Bernstein also raised its price target to $119 while maintaining a Market Perform rating, suggesting a mix of caution and optimism. William Blair maintained an Outperform rating, emphasizing Twilio’s solid fourth-quarter performance and consistent improvement in organic revenue growth. These developments reflect a range of perspectives on Twilio’s financial health and future growth potential.
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