Twilio price target lowered to $110 from $135 at Stifel

Stifel lowered the firm’s price target on Twilio (TWLO) to $110 from $135 and keeps a Hold rating on the shares. Ahead of the company’s Q1 results, the firm has been taking a closer look at the introduction of Rich Communication Services and the potential impact to the company’s model. While RCS isn’t monetized differently from traditional SMS today, the firm sees a long-term opportunity for the introduction of RCS to lead to increases in messaging volumes as text message efficacy improves under the new protocol, the analyst tells investors in a research note. Still, the ecosystem remains in the early days, so the firm remains cautious on the protocol having a near-term impact.