Twilio upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded Twilio (TWLO) to Overweight from Equal Weight with a price target of $120, up from $80. The firm views Twilio as a derivative call on artificial intelligence agents, front office, and digital transferring given its positioning as a “pick-and-shovel” in the build cycle. This is further supported by Twilio’s development mindshare and re-focused efforts on capturing the independent software vendors channel, including its AI natives, the analyst tells investors in a research note. Wells expects AI agents drive increased volumes over multiple years, which in combination with potential improvement in cyclical exposures and mix-shift to margin accretive channels, should drive sustained growth for Twilio.