Twilio (TWLO – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Derrick Wood from TD Cowen maintained a Hold rating on the stock and has a $140.00 price target.
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Derrick Wood has given his Hold rating due to a combination of factors, reflecting a balanced view of Twilio’s current performance and future prospects. The company reported 11% revenue growth in the fourth quarter, slightly exceeding guidance, but this was a deceleration compared to the previous quarter’s performance. Although Twilio demonstrated strong messaging and email growth and increased large deal activity, these positives were tempered by headwinds like the wind-down of Zipwhip and seasonal impacts on margins.
Despite the reiteration of fiscal year 2025 targets, the management’s guidance for the first quarter was slightly below street expectations. Additionally, while there are promising developments in AI integration with partners like OpenAI, the anticipated revenue impact from AI in 2025 is minimal. Given these mixed signals, the Hold rating reflects cautious optimism, acknowledging Twilio’s growth potential while remaining aware of the challenges it faces in maintaining momentum.
According to TipRanks, Wood is a top 100 analyst with an average return of 17.6% and a 64.37% success rate. Wood covers the Technology sector, focusing on stocks such as Salesforce, Microsoft, and ServiceNow.
In another report released today, Barclays also maintained a Hold rating on the stock with a $140.00 price target.