Piper Sandler upgraded Twilio, Inc. (NYSE:TWLO) to an Overweight rating (From Neutral) and raised their 12-month price target on the communications technology stock to $82.00 (From $75.00) following six months of falling estimates.
Analysts' updated view highlights Twilio's better profitability and potential for increased Free Cash Flow (FCF). Positive catalysts, including a possible business split, improved marketing, crypto involvement, and capital return, contribute to the optimistic outlook.
Despite concerns about 2024 revenue, there are signs of stabilization, making it a favorable opportunity for investors to own a top CPaaS business.
Analysts see this as a promising chance to invest in the industry leader, writing “The company is not completely out of the woods yet, but we find that this is a good opportunity to own the best house in this neighborhood.”
Piper Sandler updated their 2024-25 EPS estimates, raising 2024E to $2.79 (From $2.74), and cutting their 2025E to $3.22 (From $3.26).
Shares of TWLO are up 1.55% in pre-market trading Friday morning.