Rosenblatt initiates Twilio stock with Buy rating, $140 price target

Investing.com - Rosenblatt Securities initiated coverage on Twilio (NYSE:TWLO), currently trading at $106.03 with a market capitalization of $16.2 billion, with a Buy rating and set a price target of $140.00. According to InvestingPro data, the company has demonstrated strong financial health with a robust current ratio of 4.9.

The research firm cited Twilio’s position at a "key inflection point" where years of investment in market leadership are expected to translate into durable profitable growth and significant free cash flow generation.

Rosenblatt highlighted Twilio’s massive cross-selling opportunity as one of the key factors supporting its positive outlook on the communications platform provider.

The firm also pointed to Twilio’s "dominant position as the communications backbone for the AI ecosystem" as a competitive advantage for the company.

Rosenblatt noted that Twilio’s "new commitment to substantial shareholder returns creates a compelling risk/reward profile at current levels," supporting its bullish stance on the stock.

In other recent news, Twilio reported impressive financial results for the second quarter of 2025, with earnings per share of $1.19, surpassing the projected $1.05. The company’s revenue also exceeded expectations, reaching $1.23 billion compared to the forecasted $1.19 billion. Additionally, Twilio announced the global availability of Rich Communication Services (RCS) messaging, enhancing customer engagement through its Programmable Messaging and Verify APIs. This service allows businesses to send branded, interactive messages with features like call-to-action buttons and rich media content.

In a notable development, Twilio will be added to the S&P MidCap 400 index, replacing Amedisys Inc. This inclusion comes after UnitedHealth Group’s acquisition of Amedisys. On the analyst front, Stifel maintained a Hold rating on Twilio, highlighting consistent revenue growth and strong guidance for the upcoming quarter and year. Meanwhile, Bernstein SocGen Group lowered its price target for Twilio from $130 to $119, citing challenges in the company’s recent growth efforts. These developments reflect the dynamic landscape surrounding Twilio, providing investors with important insights into the company’s current position.

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