On Oct 31, major Wall Street analysts update their ratings for $Twilio (TWLO.US)$, with price targets ranging from $50 to $94.
Morgan Stanley analyst Meta Marshall maintains with a hold rating, and adjusts the target price from $65 to $77.
J.P. Morgan analyst Mark Murphy maintains with a buy rating, and adjusts the target price from $78 to $83.
BofA Securities analyst Michael Funk maintains with a sell rating, and adjusts the target price from $55 to $65.
Jefferies analyst Samad Samana maintains with a hold rating, and adjusts the target price from $60 to $85.
TD Cowen analyst Derrick Wood maintains with a hold rating, and adjusts the target price from $65 to $85.
Furthermore, according to the comprehensive report, the opinions of $Twilio (TWLO.US)$'s main analysts recently are as follows:
The anticipation of a return to double-digit revenue growth for Twilio has materialized sooner than projected, as evidenced by a third-quarter revenue increase to 10% year-over-year, a rise from the 7% organic growth seen in the first half of the year. This surge is attributed to robust performance in the Messaging and Email sectors, alongside growth plans related to Independent Software Vendors, self-service, and cross-selling opportunities. The shares are viewed favorably due to the potential for over 10% growth and ongoing margin improvement. The upcoming Investor Day could further act as a catalyst, especially if the company presents a convincing narrative around Artificial Intelligence and provides evidence that supports the sustainability of the current growth trajectory.
Twilio reported a robust third quarter, returning to double-digit revenue growth complemented by continued operating leverage. The outlook towards 2025 appears increasingly achievable, leaving room for valuation considerations. However, there is a need for greater clarity on the forward growth outlook.
Following Twilio's third-quarter report, there is a recognition of the potential for growth acceleration. The company's positive progress in the third quarter is seen as a significant move towards achieving the overarching ambition of consistently high, double-digit revenue growth.
Twilio's third-quarter performance was robust, surpassing revenue expectations by 4%, bolstered by a 10% year-over-year acceleration in Communications segment revenue, primarily driven by core messaging and email. However, persistent lag in Segment revenue was evident with a deceleration to flat year-over-year growth, coupled with an operating loss that did not show sequential improvement. The reasons behind the third-quarter acceleration were not distinctly communicated, making it challenging to pinpoint immediate catalysts for notable outperformance.
Twilio's third-quarter performance surpassed expectations, buoyed by increased messaging volumes, robust email revenue, and effective cost control contributing to impressive operating margin results. Despite this, the picture was tempered by uneven outcomes from Segment, which exhibited a 2-point sequential decrease in NDER to 91%. While there is an acknowledgment of Segment's ongoing improvements, there is also a recognition that revitalizing this part of the business will require time. Nevertheless, there is optimism surrounding the Communications segment's escalating progress, and the initial revenue growth projections for FY25, ranging between 7% and 8%, are seen as indicative of the management's belief in the company's enduring momentum.
Here are the latest investment ratings and price targets for $Twilio (TWLO.US)$ from 10 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
