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Thursday, Tigress Financial Partners reiterated a Buy rating on Twilio (NYSE:TWLO) with a steadfast 12-month price target of $170.00. The firm’s target aligns with broader market sentiment, as InvestingPro data shows Twilio has delivered an impressive 77% return over the past year. The firm highlighted Twilio’s continued growth driven by artificial intelligence (AI), which is enhancing customer engagement and user experience, thereby increasing revenue and shareholder value. With a robust gross profit margin of 51% and revenue growth of 9%, Twilio appears undervalued according to InvestingPro’s Fair Value analysis.
Twilio’s adoption of AI and cloud-based communication solutions has been a significant factor in attracting more customers to its multi-product offerings. This strategy, along with the company’s international expansion efforts, is credited with propelling both revenue and cash flow, as well as accelerating business performance trends. The company’s strong financial position is evident in its healthy current ratio of 4.78 and solid cash flow generation.
The company’s key growth drivers are identified as the accelerating adoption of AI technologies across its product platform, the introduction of new products that foster increased customer engagement, and the establishment of new functions and partnerships that further improve the user experience.
Twilio’s commitment to long-term value creation is supported by its investment in research and development (R&D), new product development, and strategic mergers and acquisitions. Additionally, the company aims to enhance shareholder returns through share repurchase programs, underscoring its focus on optimizing its balance sheet and product portfolio.
In other recent news, Twilio reported strong financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $1.14, exceeding the projected $0.96, and reported revenue of $1.17 billion, above the expected $1.14 billion. Following these results, several analyst firms adjusted their price targets for Twilio. Goldman Sachs increased its target to $145 while maintaining a Buy rating, citing Twilio’s solid performance in revenue and free cash flow. Scotiabank (TSX:BNS) also raised its target to $135, highlighting Twilio’s resilience and advancements in artificial intelligence. Despite a reduction in the price target to $150 by UBS, the firm maintained a Buy rating, noting Twilio’s operational improvements and internal growth initiatives. Stifel kept a Hold rating with a $110 target, acknowledging Twilio’s cautious financial outlook amidst positive performance. These developments reflect a growing confidence in Twilio’s ability to maintain double-digit growth, supported by strategic partnerships and innovations in AI.
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