Goldman Sachs analyst Kash Rangan upgraded Twilio (NYSE: TWLO) from Neutral to Buy with a price target of $185.00 (from $77.00).

The analyst comments: "We are upgrading Twilio to Buy (from Neutral) with a PT of $185 (from $77) after the company’s 2025 Analyst Day and ahead of F4Q results (2/13). Following multiple years of growth compression and several strategic actions, we believe Twilio is now hitting an inflection point both in terms of narrative and fundamentals. Twilio’s major cost reduction initiatives and ongoing efficiency measures support strong FCF generation ahead, complemented by our view for an inflecting growth profile. We believe Twilio can observe a positive revision cycle on both top and bottom-line against a conservative initial CY25 guide of +7-8% with usage trends inflecting and growth accelerating to >10% in F2H24 (vs. +7% organic in F1H). The Analyst Day affirmed our evolving view on Twilio with accelerated product velocity and an improved GTM motion on display. Enhancements to the Communications portfolio can enable Twilio to expand its already leading share in the core CPaaS market, while its rollout of CDP-enabled Communications products unlocks new TAM and a slate of AI-driven use cases ripe for adoption. Twilio’s turnaround story is firmly underway with potential for solid upside to Revenue/FCF in CY25 at what we view to be a still compelling entry point of 21x EV/FCF (CY26)."

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Shares of Twilio closed at $136.23 yesterday.