Twilio Gains on Piper Sandler Upgrade
Twilio Gains on Piper Sandler Upgrade

Twilio Gains on Piper Sandler Upgrade

Jan. 12, 2024, 11:07 a.m., readers: 15

Piper Sandler analysts upgraded Twilio (NYSE:TWLO) from Neutral to Overweight and raised the price target from $75.00 to $82.00. As a consequence, shares surged more than 4% intra-day today. The analysts commented that after a six-month period of the market adjusting to reduced top-line estimates for Twilio, they are now upgrading the stock to Overweight and increasing the price target. This revised outlook is based on several key factors: A) Twilio has demonstrated significant potential for upside in Free Cash Flow (FCF) estimates, thanks to effective execution of profitability initiatives; B) there are emerging catalysts for the company, including a potential business split, improvements in marketing budget, developments in the crypto sector, and strategies for capital return; C) despite concerns about 2024's top-line expectations, revenue seems to be stabilizing, with inputs showing improvement and headwinds expected to lessen in 2024.


T wilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. Its customer engagement platform provides a set of application programming interfaces that handle the higher-level communication logic needed for nearly every type of customer engagement, as well as enable developers to embed voice, messaging, video, and email capabilities into their applications. The company was incorporated in 2008 and is headquartered in San Francisco, California.

Price: 56.67
Market cap: 10.3 billion USD
Eps: -5.54
P/e ratio: -10.23
Terminal Research: TWLO