Piper Sandler Upgrades Twilio (TWLO) to Overweight, 'FCF, Catalysts, Improving Inputs, & Favorable Risk-Reward'

Piper Sandler analyst James Fish upgraded Twilio (NYSE: TWLO) from Neutral to Overweight with a price target of $82.00 (from $75.00).

The analyst comments "After 6 months of the stock digesting top-line estimates coming down, we are upgrading shares from Neutral to OW and raising our PT to $82 (prior $75). Our updated view is primarily based on: A) there is material upside potential to FCF estimates as Twilio has executed better on profitability initiatives; B) catalysts are emerging, including a potential business-split, marketing budget improvement, crypto, and capital return; C) while we have concerns around '24 top-line expectations, revenue does appear to be stabilizing as inputs have shown improvement and headwinds abate in '24; D) a positive risk-reward at these levels that gives investors an opportunity to own a best-in-class CPaaS business at an average CPaaS / telco multiple. 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."

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 $71.81 yesterday.

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