Analyst William Power of Robert W. Baird reiterated a Buy rating on Twilio (TWLO – Research Report), retaining the price target of $160.00.
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William Power has given his Buy rating due to a combination of factors including Twilio’s solid financial performance and strategic initiatives. Despite a slight sequential decline in adjusted gross margin in Q4, Twilio reported strong revenue growth of 11% year-over-year, aligning with previous estimates and demonstrating resilience. The company maintained its full-year guidance, indicating confidence in continued growth, and highlighted strong communications revenue, which increased by 12% year-over-year.
Another factor influencing the Buy rating is Twilio’s strategic initiatives, such as the authorization of an additional $2 billion share buyback, demonstrating a commitment to returning value to shareholders. Furthermore, Twilio’s engagement with AI-centric companies and the development of AI-driven products reflect potential for future innovation and market expansion. The company’s robust balance sheet, with significant free cash flow and cash reserves, positions it well to achieve its financial targets, including the goal of $3 billion in cumulative free cash flow from 2025 to 2027.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $165.00 price target.
TWLO’s price has also changed dramatically for the past six months – from $60.610 to $125.170, which is a 106.52% increase.