Sprouts Farmers Market closes $600 million revolving credit facility
Friday - Stifel analysts have increased the price target on Twilio (NYSE:TWLO) shares to $135.00, up from the previous $130.00, while maintaining a Hold rating on the stock. Currently trading at $122.93, Twilio has attracted attention from analysts, with InvestingPro data showing 14 analysts recently revising their earnings estimates upward. The adjustment follows Twilio's release of its fourth-quarter earnings, which came after the company had provided preliminary results and a 2025 guide during its analyst day. Analysts pointed out that the first-quarter outlook completed the financial picture, albeit with results that were slightly below market expectations on both the top and bottom lines.
Twilio's stock paused in after-hours trading as a response to the earnings report. This reaction was seen as a result of elevated expectations, especially after the company's shares experienced a significant increase post-investor day, rising 30% compared to the IGV's 2% gain. InvestingPro data reveals impressive returns, with the stock up 143% over the past six months and 103.79% over the last year, though technical indicators suggest the stock may be in overbought territory. The focus for Twilio now shifts to the execution of its mid-term strategy and annual guidance, with 2025 set as a pivotal year for the company to capitalize on the substantial Customer Experience as a Service (CXaaS) opportunity and to continue its cost management efforts, including bringing Segment to a breakeven point.
Stifel analysts highlighted the potential for Twilio's top-line growth, particularly from the application of agentic AI in customer engagement workflows. Although they consider the AI opportunity to be in its early stages, they anticipate that it could lead to significant revenue growth if it starts to have a meaningful impact.
The Hold rating indicates that Stifel analysts recommend maintaining current positions in Twilio shares, suggesting investors neither buy more nor sell existing shares. The increased price target to $135 reflects a modestly more optimistic outlook on the stock's potential performance. According to InvestingPro analysis, Twilio appears undervalued with a GREAT financial health score. Discover 15+ additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Twilio has been in the spotlight following its Q4 2024 earnings report, which surpassed market expectations by showcasing an 11% year-over-year revenue growth increase. This marked the first double-digit rise in two years, attributed partially to political-driven spending. However, Twilio's guidance for Q1 2025 anticipates a slight decline in year-over-year growth to 8.4%. Bernstein SocGen Group and Needham analysts have recently increased their price targets on Twilio, while maintaining Market Perform and Buy ratings respectively, indicating a mix of caution and optimism about the company's future performance.
William Blair also maintained an Outperform rating on Twilio, highlighting the company's consistent improvement in organic revenue growth throughout 2024. Despite a slight shortfall in free cash flow for Q4, the firm noted strong performance across various areas of the communications business, which accounts for over 90% of Twilio's revenue.
On a different note, the release of Deepseek, a new AI tool, has been creating a buzz in the software industry. Bernstein suggests that this could benefit software infrastructure providers like Twilio, as lower costs could drive higher demand for AI applications. Finally, BofA Securities raised its price target on Twilio while maintaining an Underperform rating, citing concerns about the company's valuation and potential execution risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.