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Twilio’s Strategic Cash Flow Management and Sustainable Growth Potential: A Buy Recommendation

Twilio’s Strategic Cash Flow Management and Sustainable Growth Potential: A Buy Recommendation

William Blair analyst Arjun Bhatia has maintained their bullish stance on TWLO stock, giving a Buy rating on February 14.

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Arjun Bhatia has given his Buy rating due to a combination of factors reflected in the latest financial review. Twilio is expected to maintain a strong cash flow position despite a temporary dip in the first quarter due to a $120 million payment for a newly implemented cash bonus program. This strategic move aims to reduce stock-based compensation, indicating a focus on enhancing financial health.
Furthermore, Twilio projects robust annual free cash flow of $825 million to $850 million, translating to a significant growth rate of 25% to 29% by 2025. These positive cash flow projections reinforce the company’s potential for sustainable growth, warranting a Buy recommendation from the analyst.

In another report released on February 14, J.P. Morgan also reiterated a Buy rating on the stock with a $140.00 price target.

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