UPDATE: Piper Sandler Downgrades Twilio (TWLo) to Neutral

(updating comment)

Piper Sandler analyst Brent Bracelin downgraded Twilio (NYSE: TWLo) from Overweight to Neutral with a price target of $90.00 (from $151.00).

The analyst comments "Despite promising direct to consumer (D2C) tailwinds that could more than double revenue to $2B+ over the next five years, we are downgrading TWLO to a Neutral rating based on material downside risk to growth estimates over the next two to four quarters considering revenue is directly tied to traffic volumes for some of the largest digital natives (Uber, Lyft, Lime, eBay, Shopify, etc.). We are lowering our growth estimates for 2020 to 10% y/y from 31% y/y factoring in the biggest decline in the Top 10 customer cohort (14% of sales). Until visibility improves into a traffic volume recovery, we think the near-term operating risk tied to a usage-based model outweighs the longer-term secular D2C tailwinds."

For an analyst ratings summary and ratings history on Twilio click here. For more ratings news on Twilio click here.

Shares of Twilio closed at $97.00 yesterday.

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