Twilio price target raised to $119 from $82 at Bernstein

Bernstein raised the firm’s price target on Twilio (TWLO) to $119 from $82 and keeps a Market Perform rating on the shares. The firm notes Twilio’s Q4 earnings continued improvement in revenue growth, reaching double digits for the first time in two years as they beat consensus by 115 bps. This was helped by continued political-driven spending that overcame the remaining headwinds in ZipWhip end of life. Guidance for Q1 imagines some retrenchment back below double digits to 8.4% year-over-year, with a difficult leap-year comp, plus two fewer days to generate revenue in Q1 2025 vs. Q4 2024. Bernstein anticipates this is conservative, and they will likely get just over 10% growth, as the continued improvement in the economy drives commercial engagement for their customers, and thus increased consumption of the Communications service.