Twilio (NYSE:TWLO) shares trade over 1.2% lower in Friday pre-open after Mizuho analysts downgraded the stock to Neutral from Buy with a price target of $55 per share (down from $90).
The analysts cite near-term challenges that are impacting Twilio’s growth profile. The company recently reported Q1 results and guidance that was below consensus.
“The growth deceleration reflects the difficult macro backdrop (as well as tough Y/Y comps from crypto) that will likely continue to pressure growth over the near term,” the analysts said in a client note.
As a result, Twilio stock fell to fresh year-to-date lows as investors digest the latest updates.
“While we remain positive on TWLO's leadership in CPaaS and potential to become a B2C CRM platform with Engage, we expect TWLO's growth to remain subdued in the near term and thus lower our estimates.”
The analysts added that they don’t see any near-term catalysts that could help Twilio stock to re-rate higher.
Goldman Sachs and KeyBanc analysts also downgraded TWLO stock this week.