Twilio downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Twilio to Equal Weight from Overweight with a price target of $60, down from $70. The analyst cites a lack of next 12 months sales catalysts and the majority of the company’s of near-term operating leverage having been achieved for the downgrade. The firm still likes Twilio’s long-term story, but given consumer health overhang, it sees more attractive risk/rewards elsewhere. Consumer health and enterprise software softness is likely to weigh on meaningful growth reacceleration over the next 12 months, the analyst tells investors in a research note.