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Investing.com - Wells Fargo has initiated coverage on Twilio (NYSE:TWLO) with an Overweight rating and a $130.00 price target. According to InvestingPro data, the company maintains strong financials with a current ratio of 4.9x and has demonstrated solid revenue growth of 11.56% over the last twelve months.
The firm cites multiple positive factors supporting its bullish outlook, including low artificial intelligence disruption risk, tailwinds from providing infrastructure for voice AI, the RCS (Rich Communication Services) build-out cycle, and strong free cash flow generation.
Wells Fargo’s price target reflects a 19.3x EV/FCF multiple based on calendar year 2027 estimates, suggesting significant upside potential for the communications platform company.
The firm notes that Twilio appears well-positioned to benefit from the voice AI paradigm shift as startups utilize Twilio’s infrastructure due to its relationship with OpenAI and easy-to-use APIs.
Wells Fargo also highlights that OpenAI’s Realtime API and Twilio RCS both became generally available in late August 2025, with the RCS build-out representing an additional tailwind that could help unlock two-way messaging use cases.
In other recent news, Twilio has announced the global launch of its Rich Communication Services (RCS) messaging, enhancing customer engagement with interactive features. This follows a public beta phase and is now available to over 349,000 active customer accounts. In earnings-related updates, Twilio reported its third consecutive quarter of double-digit revenue growth, marking its fifth consecutive quarter of revenue acceleration. Stifel has maintained a Hold rating on Twilio, citing margin pressures but acknowledging strong top-line guidance for the upcoming quarter and full year.
RBC Capital continues to rate Twilio as Underperform with a $75 target, though it noted positive developments in Twilio’s growth path, particularly in messaging and AI-enabled voice offerings. Conversely, Rosenblatt Securities initiated coverage with a Buy rating and a $140 price target, highlighting Twilio’s potential for durable profitable growth and significant free cash flow. Additionally, Twilio’s inclusion in the S&P MidCap 400 index was recently announced, replacing Amedisys Inc. These developments reflect a mix of strategic moves and analyst perspectives on Twilio’s current position and future potential.
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