Twilio price target raised to $90 from $85 at Oppenheimer

Oppenheimer analyst Ittai Kidron raised the firm’s price target on Twilio (TWLO) to $90 from $85 and keeps an Outperform rating on the shares. The firm notes Twilio reported a Q3 beat on accelerating messaging volumes, strong email revenues, and prudent cost management to drive strong OM performance. The strength was balanced by mixed results from Segment, which saw NDER contract 2pts sequentially to 91%. While the company believes Segment is making progress, management cautioned a re-acceleration in the business will take time. Nonetheless, Oppenheimer comes away encouraged by the growing momentum in Communications, and views initial FY25 revenue growth guidance of 7%-8% as a reflection of management confidence in sustained momentum.