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Investing.com - Rosenblatt Securities maintained its Buy rating and $140.00 price target on Twilio (NYSE:TWLO) following the company’s strong third-quarter 2025 performance. This target aligns closely with InvestingPro’s Fair Value assessment, suggesting Twilio may be slightly undervalued at current levels.
The cloud communications platform achieved record revenues in the quarter, accompanied by robust customer account growth of 22.5% year-over-year and improved profitability despite gross margin challenges. Twilio’s Dollar-Based Net Expansion Rate (DBNR) expanded to 109% during the period. InvestingPro data shows Twilio holds more cash than debt on its balance sheet with a comfortable current ratio of 4.9, providing strong financial flexibility.
Key growth drivers showed significant momentum, with cross-selling initiatives up 20% year-over-year and international revenue increasing 18% compared to the same period last year. Voice revenue growth reached its highest rate in over three years, while messaging growth outpaced overall business performance.
Twilio secured its largest deal in company history during the quarter, closing a nine-figure renewal agreement. The company delivered these results despite facing headwinds from increased Verizon A2P fees.
Management raised guidance across all metrics, projecting what would be Twilio’s fifth consecutive quarter of double-digit year-over-year growth. Rosenblatt’s $140 price target represents 3.8x EV/CY26 Sales, a premium to the peer group average of approximately 3x.
In other recent news, Twilio’s third-quarter earnings and revenue results have drawn significant attention from analysts. The company reported organic revenue growth of 13%, leading to an increase in its fiscal year 2025 organic growth guidance to 11.3-11.5%. This performance has prompted several investment firms to adjust their price targets for Twilio. Morgan Stanley raised its price target to $154, citing broad-based strength across Twilio’s channels and products. Needham also increased its target to $145, maintaining a Buy rating due to the company’s strong growth. Goldman Sachs set its new target at $150, acknowledging Twilio’s revenue exceeding consensus estimates by 3.7% and better-than-expected operating and free cash flow margins. Additionally, Citizens reiterated a Market Outperform rating with a price target of $165, highlighting Twilio’s trusted platform for customer interactions. Meanwhile, BofA Securities raised its target to $110, despite maintaining an Underperform rating, after Twilio surpassed expectations in key financial metrics. These developments reflect a positive reception from the investment community regarding Twilio’s recent performance.
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