Twilio upgraded to Outperform from Neutral at Baird

Baird analyst William Power upgraded Twilio (TWLO) to Outperform from Neutral with a price target of $160, up from $115, following the investor day and pre-released Q4 upside. The firm came away more confident in the company’s ability to continue to drive double-digit revenue growth and further upside to guidance and estimates. Baird expects Twilio’s “beat-and-raise cadence” to continue to push shares higher, particularly with the strengthening profitability, cash flow, and capital returns. It also also views the stock’s valuation as “still reasonable, particularly given potential upside scenarios.”